TY  - JOUR
T1  - Analysis of the Variability of Interest Rate Structure on Corporate Financial
Investment Decisions: The Nigerian Perspective
AU - Ijeoma Perpetua, Onuoha AU - Theresa Nnenna, Uwakwe AU - Roseline Ali, Oko AU - Chinazor Franca, Obi 
JO  - International Business Management
VL  - 13
IS  - 9
SP  - 381
EP  - 391
PY  - 2019
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2019.381.391
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2019.381.391
KW  - Corporate financial investment
KW  -interest rate
KW  -interest rate variation
KW  -investment decisions
KW  -economic growth
KW  -Nigeria
AB  - This study examines the variations in interest rate structure on corporate financial investment
decisions in Nigeria. The study spans from the periods 2000-2019. The objective of this research among others
is to find out the effect of interest rate variations on corporate financial investments in Nigeria. The study
employed a quasi experimental correlation design using an Ordinary Least Square (OLS) method of regression
analysis and various tests of significance. The first observation revealed that positive relationship exists
between the interest rates and the level of corporate investment decisions. The result of the second regression
revealed an inverse relationship which indicates that investment in corporate assets increases with decrease in
interest rate. It is pertinent, therefore, to assert from the investigations made, so far that the level of variation
in interest rate played a negative but highly significant role in investment decision in the economy. Demand
for credit also had negative and significant influence on interest rate variations in both the short run and long
run. Although, the study deduced that investment has an indirect relationship with interest rate variation, other
variables such as debt income, real income, government spending, aggregate savings and money stock affects
gross domestic investment. Improvement in these key macro-economic variables is a necessary condition
towards facilitating investment in Nigeria. The researcher recommends inter alia that an essential prerequisite
condition needed to promote corporate financial investments is for the government to formulate and implement
policies that enhances investments.
ER  -