Home»Banking and Finance» Bank lending and industrial sectors financial performance in Nigeria (case study of Dangote Cement Plc)

Bank lending and industrial sectors financial performance in Nigeria (case study of Dangote Cement Plc)

 Department:Banking and Finance  
 By:usericon godwin01  

 Project ID: 8021
 Rating:  (5.0) votes: 1
   Price:₦3000
Abstract
Bank Lending is a crucial aspect of the industrial growth of an economy as it helps industrial firms carry out capital-intensive projects to remain operational and stay competitive in their respective markets. The nature of these loans may be short-term or long-term. This study set out to obtain a relationship between how long-term and short-term loans from banks and other financial institutions may boost the net revenue (EBITDA) of industrial firms in Nigeria. Using Dangote Cement Plc as a test sample, a linear regression model was adopted to compute the correlation coefficients and p-values of the independent variables: Total Current Liabilities (TCL) and the Total Non-Current Liabilities on the EBITDA of the organization. The results from the analysis showed that the TCL positively contributes to the EBITDA of DCP with a correlation coefficient of 0.504 and a p-value of 0.001. On the other hand, the TNCL, negatively connects with the EBITDA with a coefficient. of - 0.001 and a p-value of 0.998. Also, the model’s ability to classify new data by an R-squared value of 92% showed a promising response of the independent variables on the dependent variable. Finally, based on the results, it can be concluded that whereas non-current liabilities have no direct or positive impact on a manufacturing company's net earnings (EBITDA), current liabilities such as short-term loans, dividends, accounts payable, notes payable, and income tax owed, contribute to the growth of industrial firms. .       ...
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