CHARTERING FUNDING AND RETURN ON ASSETS OF GUARANTEE CURRENCY STORES
Abstract
The study set out to examine the chartering funding and return on assets of Guarantee Currency Stores. The study adopted the ex-post facto research design. The main purpose of the study was to generally evaluate the extent to which chartering funding could be considered as a better option amongst the various options of funding and extent which chartering funding affect the return on assets of guarantee currency stores. Data were collected from the annual reports of the selected Guarantee Currency Stores and the data were analyzed using regression method. The findings revealed that there is positive and significant relationship between funding charter, debt funding and return on asset respectively. Based on the findings, it was concluded that funding charter is one of the major sources of funding any asset as this option of funding ensures ample return on asset. The policy and economic implications are that; Guarantee Currency Stores should think through and judiciously appraise funding charter alternative in the construction of their capital structure as this increases return on asset more than others sources of capital while Machinery Charter Union of Nigeria should create more awareness on the significance of funding charter to encourage those Guarantee Currency Stores seeking for funds to use either funding charter or debt capital taking into reflection the benefits of the two options in terms of improved corporate return on asset.
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DOI: http://dx.doi.org/10.46827/ejmms.v0i0.803
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