MACRO-ECONOMIC FACTORS AND FIRM ATTRIBUTES ON FINANCING POLICIES OF AGRICULTURAL LISTED FIRMS IN NIGERIA

Abstract

Agricultural firms operate within a uniquely challenging macroeconomic environment and endogenous resources,

yet empirical evidence on how those forces jointly shape their financing policies remains inconclusive. This study

examines the effect of macro-economic factors and firm attributes on firms' financing of agriculture firms listed on

the Nigerian Exchange Group (NGX) for the period 2012 to 2024. An explanatory research design was adopted in

this study. Data was extracted from the entire five agriculture firm on the floor of NGX. Inferential and descriptive

analysis was used to analysis the collected data. Results from panel regression analysis reveal several important

findings. First, macroeconomic environment exerts a statistically significant and economically material influence on

the financial policy of Nigerian agriculture firms. Second, firm attributes are equally consequential determinants of

financial policy. Finally, the findings demonstrate that no single theoretical framework fully captures the complexity

of financial policy determinants in Nigeria's agricultural sector. The study recommends that management of

agriculture firms should develop proactive interest rate risk management strategies because of its negative

significant effects, policymakers at the Central Bank of Nigeria (CBN) should also consider sector-specific

monetary policy interventions and Securities and Exchange Commission (SEC) and the NGX should develop

specialized long-term financing instruments for agriculture firms in Nigeria.