debt structure. Lucey and Zhang (2011) highlighted long and short term debt ratios as good measure of leverage ratios in developing countries because of the fund mismatch caused by limited long term debt. The financial system in emerging economies, including Nigeria, is punctuated with poor debt markets. The external debt finance of most firms is mainly short term finance and greater reliance are placed on banks or other financial institutions for most of the external funds, thereby imposing extra burdens on the firms in the shape of exorbitant cost. This may account for the reasons why some scholars adopt different measures of debt ratio as against narrow measure of debt financial structure (For example, Chen, 2004; Khan, 2012; Ong Tze-Sam & Heng, 2011; Zeitun & Tian, 2007). Mismatchinghandful of them are on the effects of debt structure on corporate performance, especially in the developing countries. The work of Jensen and Meckling (1976) was one of the early studies on the interaction between capital structure and firm performance. However, over the last decades, a number of other studies have been performed to investigate the relation of financial leverage with firm performance, but empirical evidence regarding this relationship have been found to be contradictory and inconclusive. In this regard, two basic strands of findings exist in extant literature. Studies in the first strand, including those of John and Senbet (1998), Abor (2005), Zeitun and Tian (2007), Onaolapo and Kajolan(2010), and Taiwo and Olayinka, (2012) document positive relationship between debt financing and corporate performance. In the other strand,