International records / OpenAlex research

Financial Leverage and Commercial Banks Performance in Nigeria

This study examined the effect of financial leverage on the performance of commercial banks in Nigeria, recognising that bank performance is critical for financial stability and economic growth. An ex-post facto research design was adopted, using secondary data from 25 commercial banks covering 2004 to 2023. The main objective was to investigate how three dimensions of financial leverage, that is, ratio of equity to total assets (EQTA), ratio of equity to total debt (EQTD), and ratio of long-term debt to total assets (LTDTA), influenced return on assets (ROA), a key indicator of performance. T…