ABSTRACT
The study investigated capital structure and corporate performance in Nigerian listed insurance companies, it aimed to examine the leverage on the profitability of quoted insurance companies in
Nigeria, to ascertain the effect of leverage ion the liquidity of quoted insurance companies in Nigeria. Descriptive statistics was used to summarize the data collected during the study in a clear and understandable way, ordinary least square regression (OLS) method was adopted to investigate the relationship between the dependent and independent variables. From the study Debt to equity ratio (LEV} reflects a mean of 1.8507 and a standard deviation of 0.99392, it also has a minimum value of0.50 and a maximum value of 5.12.the profitability (PROF) has a mean of0.08568 and it reflects a minimum value of 0.07 and maximum value of 0.51. The study also revealed that liquidity (LIQ) reflects a rriean of 0.4880 with a deviation of 0.17596. With both maximum and minimum values of 0.73 and 0.00 respectively. The R value shows that there was a positive relationship between LEV and PROF. However, the study showed that there was a significant effect of leverage ratio on the profitability of listed firms in Nigeria. Also, there was no significant effect of leverage ratio on the liquidity of listed firms in Nigeria. It is recommended based on the findings from the study that insurance firms should watch out for the cost of each source of capital. They should use and effective and efficient capital combination so as to enhance higher profitability for the forms.
TABLE OF CONTENTS
CHAPTER ONE INTRODUCTION
I.I Background to the Study
1.2 Statement of the Problem 2
1.3 Objective of the Study 3
1.4 Research Questions 3
1.5 Research Hypotheses 3
1.6 Scope of the Study 4
1.7 Significance of the Study 4
CHAPTER TWO LITERATURE REVIEW
~ 2.1 Introduction s
2.2 The concept of capital structure
2.1.2 Capital structure and liquidity of firms s
7
2.2.3 Capital structure and profitability of firms 7
2.3 Theoretical framework of capital structure 8
2.3.1 The Modigliani and miller (mm) irrelevancy theory 8
2.3.2 The perking order theory 9
2.3.3 The trade-off theory 10
2.3.4 The Agency Theory 10
2.4 Review of empirical studies 11
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design 22
3.3 Population and Sample Size 22
3.4 sample size and sampling techniques 22
3 .4 Source of Data 23
3.5 Data analysis technique 23
3.6 Definition of variables 23
3.6.1 Independent Variables 23
3.6.2 Dependent variables 23
3. 7 Model specification 24
3.8 limitation of the methodology 24
CHAPTER FOUR
PRESENTATION OF DATA, ANALYSIS AND INTERPRETATION
4.1 Presentation of Data' 31
4.2 Data Analysis 31
4.2.1 Data validity 31
4.2.2 Descriptive statistics 32
4.2.3 Regression of the Estimated Model Summary 33
4.3. l Regression results 35
4.3.2 Test of hypotheses 37
4.3.2.1 Test of research hypothesis one 37
4.3.2.2 Test of research hypothesis two 37
4.4 Discussion of findings 3 8
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 SummaryofFindings 39
5.2 Conclusion 39
5.3 Recommendations 39
5 .4 Limitation of the study 40
5.5 Suggestions for further Research 41
References
Appendix
JOHN, U (2021). Capital Structure And Corporate Performance In The Nigerian Listed Insurance Companies. Repository.mouau.edu.ng: Retrieved Sep 19, 2024, from https://repository.mouau.edu.ng/work/view/capital-structure-and-corporate-performance-in-the-nigerian-listed-insurance-companies-7-2
UCHEMADU, JOHN. "Capital Structure And Corporate Performance In The Nigerian Listed Insurance Companies" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 14 Jan. 2021, https://repository.mouau.edu.ng/work/view/capital-structure-and-corporate-performance-in-the-nigerian-listed-insurance-companies-7-2. Accessed 19 Sep. 2024.
UCHEMADU, JOHN. "Capital Structure And Corporate Performance In The Nigerian Listed Insurance Companies". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 14 Jan. 2021. Web. 19 Sep. 2024. < https://repository.mouau.edu.ng/work/view/capital-structure-and-corporate-performance-in-the-nigerian-listed-insurance-companies-7-2 >.
UCHEMADU, JOHN. "Capital Structure And Corporate Performance In The Nigerian Listed Insurance Companies" Repository.mouau.edu.ng (2021). Accessed 19 Sep. 2024. https://repository.mouau.edu.ng/work/view/capital-structure-and-corporate-performance-in-the-nigerian-listed-insurance-companies-7-2