The impact of debt financing on financial performance of mining firms in Harare, Zimbabwe

According to Manson, McCartney & Sherer (2017) it is necessary to adopt debt financing if the organization is financial distressed. Despite embarking on debt financing to boost their financial performance, mining firms such Dallaglio investments are faced with challenges which are centred on losses and misuse of funds. Insyiranui et al (2013) argue that debt financing programmes help organizations to improve the financial performance. However, Muziri (2015) argued that debt financing has no tangible benefits to organizations as some organizations misuse funds. Lev et al. (2010) argue that studies on the relationship between debt financing and organizational performance does not offer sound conclusion about financial performance results and it was established that some companies who embark on debt financing does not always enjoy profits or financial gains. It is against this background that this research study wishes to gain abysmal understandings into the impact of debt financing on financial performance of mining firms in Zimbabwe