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INTERFACE OF LEVERAGE AND EARNINGS: AN INVESTIGATION INTO THE NIGERIA MANUFACTURING SECTOR, CASE OF NIGRIA BREWERIES PLC

Ikpefan, Ochei Ailemen and Enahoro, J. A. INTERFACE OF LEVERAGE AND EARNINGS: AN INVESTIGATION INTO THE NIGERIA MANUFACTURING SECTOR, CASE OF NIGRIA BREWERIES PLC. In: INTERFACE OF LEVERAGE AND EARNINGS: AN INVESTIGATION INTO THE NIGERIA MANUFACTURING SECTOR, CASE OF NIGRIA BREWERIES PLC. UNSPECIFIED, pp. 1-14.

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Abstract

There is no doubt that financial and operating leverage are important because of the way these factors exert significant effect on the level and variability of returns, and consequently on the overall risk of a firm. An efficient mix of the two factors will minimize the incidence of business risk and financial risk. This work is concerned with assessing the variability in the stream of the firms’ residual earnings induced by the use of operating and financial leverages. The study has empirically employed the use of multiple regression analysis to investigate the impact of the two leverages on earnings and the emphasis is on the manufacturing sector. The result shows that sales, operating leverage, financial leverage and combined leverage have significant influence on earnings of NB Plc from 1979 – 2004.

Item Type: Book Section
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce
H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 22 Sep 2016 15:46
Last Modified: 22 Sep 2016 15:46
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/7250

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