LONG TERM DEBT RATIO AND EARNINGS PER SHARE OF LISTED MANUFACTURING FIRMS IN NIGERIA

Abstract

This study determined the effect of Long Term Debt Ratio on Earnings Per Share of listed Manufacturing Firms in Nigeria. Ex Post Facto research design was adopted. Data were generated from annual reports and accounts of the sampled companies. The analysis was carried out via regression analysis; the result shows that Long Term Debt Ratio has no significant effect on Earnings Per Share of quoted manufacturing firms in Nigeria. This implies that the percentage of a company's assets may not liquidate to repay its long-term debt. Based on the finding, the study recommended that government and/or lending institutions should design long term financing options suitable for firms such as credit and equity guarantees as well as industry-based credit facilities that will make long term credit not only available but also affordable.