MEDIATING EFFECT OF FINANCIAL LEVERAGE ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE MECHANISMS AND LEASING IN LISTED NON-FINANCIAL FIRMS IN NIGERIA

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dc.contributor.authorMUSA-MUBI, Aliya
dc.date.accessioned2026-10-22T20:47:23Z
dc.date.available2026-10-22T20:47:23Z
dc.date.issued2024-11
dc.descriptionA THESIS SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES, AHMADU BELLO UNIVERSITY, ZARIA IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DOCTOR OF PHILOSOPHY (PhD) IN ACCOUNTING AND FINANCE DEPARTMENT OF ACCOUNTING FACULTY OF MANAGEMENT SCIENCES AHMADU BELLO UNIVERSITY, ZARIA
dc.description.abstractWhile acknowledging the agency problems associated with capital structure of corporate firms and the search for optimal alternative finance sources, this thesis examines the finance choice of leasing in listed non-financial firms in Nigeria. It investigates the effect that corporate governance mechanisms have on its utilisation with emphasis on the mediating role that financial leverage (other debt components in firms’ capital structure) plays in the relationship. For a sample of 53 listed non-financial firms, data were obtained for leasing, financial leverage, Board structure, share ownership and firm-level variables (profitability, firm size and growth) covering the period, 2012-2021. Based on a correlation research design, regression was first run to ascertain the effects of Board size, Board independence, Board gender diversity, Specialised Board committee, managerial ownership, foreign ownership, institutional ownership and ownership concentration on leasing in these firms. For the mediation analysis, regression was run within the framework of structural equation modelling (SEM) with the Monte-Carlo approach to test for mediation applied in order to conclusively determine the presence of any indirect effects. Findings reveal that Board size, Board independence, Board gender diversity, presence of a specialized Board committee and managerial ownership, significantly affect leasing in listed non-financial firms in Nigeria. Financial leverage was also found to mediate the relationship between Board gender diversity (partial mediation), foreign ownership (partial mediation), institutional ownership (full mediation) and leasing. The study therefore, concludes that corporate governance mechanisms affect leasing in listed nonfinancial firms in Nigeria and that financial leverage plays a mediating role in the ascertained relationship. Recommendations are made for policies by regulatory bodies which advocate for substantial number of Board members, independent, non-executive Board Directors and females on the Board as this would positively affect the choice to finance by leasing. Given respective idiosyncrasies, firms can determine the optimal levels in relation to size and gender. However, independent, non-executive directors should comprise the majority of Board directors. Listed non-financial firms in Nigeria are also advised to devise or strengthen strategies that would enhance efficiencies of specialised Board committees such as providing clear mandates, training, and conduct of performance reviews to ensure effectiveness. Levels of managerial shareholding should be limited in order to avoid adverse effects on employment of leases. In addition, incentives (bonuses, allowances, insurance schemes and other perks) can be provided to managers to employ debt financing where appropriate especially as it relates to leases
dc.identifier.urihttps://kubanni.abu.edu.ng/123456789/13229
dc.language.isoen
dc.titleMEDIATING EFFECT OF FINANCIAL LEVERAGE ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE MECHANISMS AND LEASING IN LISTED NON-FINANCIAL FIRMS IN NIGERIA
dc.typeThesis
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MEDIATING EFFECT OF FINANCIAL LEVERAGE ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE MECHANISMS AND LEASING IN LISTED NON-FINANCIAL FIRMS IN NIGERIA
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