EFFECT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA
Abstract
ABSTRACT
This research examined effect of capital structure on the performance of listed manufacturing firms in Nigeria spanning the years 2013 to 2022. The primary objective was to assess the overall effect of capital structure choices on the corporate performance of Nigerian quoted firms, particularly by establishing relationships between these choices and key performance indicators such as long-term debt to equity, and long-term debt Jo asset. Secondary data from the Nigerian Exchange Group Fact Book constituted the dataset for this study. Multiple regressions were employed as the analytical tool, revealing that LTDE and LTDA had a significant impact on return on asset; it did exhibit a significant effect on return on assets for listed manufacturing firms in Nigeria. The study recommends that the management of Nigerian quoted manufacturing firms should focus on optimizing their capital structure to enhance LTDE and LTDA. Additionally, investors and stakeholders are advised to consider the capital structure level of any firm before making financial commitments, as the financing mix strength significantly influences the quantum of returns.
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