CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF SOME SELECTED MANUFACTURING COMPANIES IN NIGERIA

This study set out to ascertain the relationship between Capital Structure and Financial Performance of some Selected Manufacturing Firms in Nigeria (2014-2023). Specifically; it determined the extent of relationship between Debt-to-Equity, Total Debt ratio, Equity-assets ratio and Return on assets of manufacturing companies in Nigeria. An ex –post facto research design approach was adopted for the study. Using a series data for the period of ten (10) years 2014 to 2023.Eight selected listed manufacturing companies were purposively chosen based on the firms’ position as one of the largest companies in manufacturing sector and its asset base and liquidity position. Secondary data were obtained from the financial statements of the companies from 2014 to 2023 financial year. Three hypotheses were formulated and tested in the course of this study. Regression analysis by aid of Eview v 10.00 was used to test for statistical significance of the relationship between Capital Structure and Financial Performance. The results showed that there is significant positive relationship between Debt-to-Equity and Return on assets of manufacturing companies in Nigeria. This study further revealed that there is significant positive relationship between Total Debt ratio and Return on assets of manufacturing companies in Nigeria. Finally, the result also established that there is insignificant positive relationship between Equity-assets ratio and Return on assets of manufacturing companies in Nigeria. Based on the findings, this study recommended among others; that the appropriate capital mix should be tailored towards viable investment opportunities for maximum return of shareholders wealth and value of the company