Effect of lease financing on the financial performance of First Bank Nigeria plc.

Description

The research work examines the effect of lease financing on financial performance. A case study of First Bank Nigeria Plc, 2014 to 2018. The central objective of the study was to examine how to determine the effect of operating lease on the Return on Assets (ROA) of First bank Nigeria plc. Performance was measured with ROA. Related works of literature were reviewed relating to effect of lease financing on the financial performance was extensively reviewed. Agency cost theory underpinned the study. The study employed the Ex-post facto research design. Secondary source used from the audited annual financial report from First Bank Nigeria Plc under the period of 5years (2014-2018). The study adopted linear regression, ANOVA, correlation analysis using SPSS version 23. The findings revealed that the finance lease has no significant relationship with the Return on Assets (ROA) of First bank Nigeria plc. The study concluded that Lease financing has a significant effect on the financial performance of first bank Nigeria plc. And the study recommended that Banks and operators in the manufacturing sector facing asset acquisition problem should focus more on galvanizing profitability through lease financing.