Effect Of Capital Structure On Corporate Performance: A Study Of Selected Companies In Nigeria. (A Study Of First Bank Nigeria Plc)
ABSTRACT
The study investigates the effect
of capital structure on co-operate performance: A study of selected companies
in Nigeria. The main objective of this study is to examine the extent to which
capital structure influence corporate performance. The ex-post facto research
design was adopted, the research adopted secondary data on getting the required
information from first bank Nigeria plc was used in testing the hypothesis and
use of structured questionnaire were also applied. Based on the findings
obtained from the study the following conclusions were drawn. Debt/equity ratio
significantly influences investment decisions in companies, with most investors
preferring to invest in companies with a smaller debt/equity ratio. Also, it
could be concluded from the above findings that the performance of a company is
significantly related to the capital structure ratios Based on the findings of
the study the following recommendations were made: Firms should endeavour to
strike a fair balance between debt and equity and not to over depend on debt.
Retained earnings should be the first source of financing a business venture before
considering debt and equity. Where extra fund is needed, the company should
preferably go for equity capital as the risk would be shared among the
investors.
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MICHAEL, U (2021). Effect Of Capital Structure On Corporate Performance: A Study Of Selected Companies In Nigeria. (A Study Of First Bank Nigeria Plc). Repository.mouau.edu.ng: Retrieved Nov 26, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-capital-structure-on-corporate-performance-a-study-of-selected-companies-in-nigeria-a-study-of-first-bank-nigeria-plc-7-2
UNIVERSITY, MICHAEL. "Effect Of Capital Structure On Corporate Performance: A Study Of Selected Companies In Nigeria. (A Study Of First Bank Nigeria Plc)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 19 Jul. 2021, https://repository.mouau.edu.ng/work/view/effect-of-capital-structure-on-corporate-performance-a-study-of-selected-companies-in-nigeria-a-study-of-first-bank-nigeria-plc-7-2. Accessed 26 Nov. 2024.
UNIVERSITY, MICHAEL. "Effect Of Capital Structure On Corporate Performance: A Study Of Selected Companies In Nigeria. (A Study Of First Bank Nigeria Plc)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 19 Jul. 2021. Web. 26 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-capital-structure-on-corporate-performance-a-study-of-selected-companies-in-nigeria-a-study-of-first-bank-nigeria-plc-7-2 >.
UNIVERSITY, MICHAEL. "Effect Of Capital Structure On Corporate Performance: A Study Of Selected Companies In Nigeria. (A Study Of First Bank Nigeria Plc)" Repository.mouau.edu.ng (2021). Accessed 26 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-capital-structure-on-corporate-performance-a-study-of-selected-companies-in-nigeria-a-study-of-first-bank-nigeria-plc-7-2