Abstract
A number of manufacturing firms in Nigeria are folding up. Although, there are several reasons why this is happening, the study investigated the corporate financial problems: A case study of listed manufacturing firms in Nigeria because of the crucial roles they play in the Nigerian economy. The results of the previous studies reviewed showed that equity financing had a positive significant impact on the financial performance of listed manufacturing firms in Nigeria. However, the findings on debt financing were not consistent. While some studies reported that debt financing had a positive significant impact on the financial performance of listed manufacturing firms in Nigeria, some revealed that debt financing had a negative significant impact on the financial performance of listed manufacturing firms in Nigeria. Thus, the study recommends that the listed manufacturing firms in Nigeria should continue to use the optimal level of equity in financing their operations because by using equity, they have directly avoided the payment of high interest that may impact negatively on their performance. In using equity to finance their activities, the excess profits can either be paid as dividend or they can be reinvested into the business for better performance if the management considers it that it is better do so.