DERMINANTS OF CAPITAL STRUCTURE OF LISTED FIRMS IN NIGERIA

This study investigates the determinants of capital structure among listed consumer goods firms in Nigeria, using data from 18 firms between 2014 and 2023. A purposive sampling technique was adopted, and secondary data were sourced from audited financial statements. Anchored on the Pecking Order and Agency Theories, the study employs descriptive statistics, diagnostic tests, and Panel Generalized Least Squares (GLS) regression. Findings show that firm size has a significant negative effect on capital structure, indicating that larger firms tend to rely less on debt. Profitability shows a weak positive but statistically insignificant effect, suggesting that more profitable firms may use slightly more debt. Asset tangibility reveals a marginal positive but insignificant relationship, implying that tangible assets may enhance borrowing capacity without strongly influencing leverage. Firm growth also shows a positive but non-significant effect, indicating limited influence on capital structure decisions. The study concludes that firm-specific characteristics influence capital structure decisions differently, with firm size emerging as a key determinant. The findings reinforce the relevance of internal financing in the capital structure decisions of Nigeria’s consumer goods sector. It is recommended that policymakers and financial managers align capital structure strategies with firm size and financing capacity. Future research should extend the scope to other sectors and incorporate macroeconomic variables for broader insights.