Impact of Leverage on the Financial Performance of fisted Manufacturing Firms in Nigeria

In the capital build-up of an entity, it is usual for firms to select from different sources of finance with which investment can be financed. This research therefore seeks to establish whether or not leverage has an impact on the financial performance of listed manufacturing industries in Nigeria. Samples of four industries listed in the Nigerian Stock Exchange out of a population offifteen listed manufacturing industries were selected for the purpose of this research. Descriptive as well as regression analysis were used to analyze the data collected from the annual audited financial statement of these firms. The independent variables employed in the research were Debt and Equity while the dependent variables were Return on Asset, and Return on Equity. Ratios were computed accordingly and entered into E-views software for analysis. Finding revealed that debt had negative and significant impact on the financial performance of listed manufacturing firms in Nigeria. Recommendations were made that managers of manufacturing firms should prioritize their sources of financing and ensure that minimum debt or optimal debt financing is employed in the capital structure.