Impact Of Capital Structure Components On Financial Performance Of Listed Companies In Nigeria

OGUNMOLA AJIBADE OLUFEMI | 1 page (31774 words) | Theses

ABSTRACT

This study investigatedthe impact of capital structure components on financial performance of quoted companies in Nigeriawith specific reference to how short term debt, long term debtand equity affect financial performancein terms of Earnings per share (EPS), Dividend per share (DPS) and Net asset per share(NAS)of quoted companies in the Nigerian Stock Exchange. The research design adopted in this study wasan explanatory non-experimental design. The sample size used was thirty-six (36) quoted companies;representingeach sector on the Nigeria Stock Exchange as at December 2015 for a period of 11 years i.e. 2005 to 2015. Data used for the study was secondary data and were collected on short term debt, long term debt and equity and financial performance (EPS, DPS and NAS).  Ordinary Least Squares methodwas used in analyzing the data. A positive relationship was found to exist between short term debt, long term debt, equity and firm performance. Furthermore, the finding also shows that all variables are positively related to firm performance. This relationship is statistically significant at 5% level.The study concluded that all the independent variables (STD, LTD and EQ) are positively related to firm performance (EPS, NAS and DPS); moreover, STD, LTD and EQ are significantly associated with firm performance.This study recommendedthat government should create an enabling business friendly environment so that businesses can thrive. This is evident in the fact that macroeconomic variables positively affect the performances of most firms in Nigeria.

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APA

OGUNMOLA, O (2022). Impact Of Capital Structure Components On Financial Performance Of Listed Companies In Nigeria. Repository.mouau.edu.ng: Retrieved Jan 26, 2023, from https://repository.mouau.edu.ng/work/view/impact-of-capital-structure-components-on-financial-performance-of-listed-companies-in-nigeria-7-2

MLA 8th

OLUFEMI, OGUNMOLA. "Impact Of Capital Structure Components On Financial Performance Of Listed Companies In Nigeria" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 22 Mar. 2022, https://repository.mouau.edu.ng/work/view/impact-of-capital-structure-components-on-financial-performance-of-listed-companies-in-nigeria-7-2. Accessed 26 Jan. 2023.

MLA7

OLUFEMI, OGUNMOLA. "Impact Of Capital Structure Components On Financial Performance Of Listed Companies In Nigeria". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 22 Mar. 2022. Web. 26 Jan. 2023. < https://repository.mouau.edu.ng/work/view/impact-of-capital-structure-components-on-financial-performance-of-listed-companies-in-nigeria-7-2 >.

Chicago

OLUFEMI, OGUNMOLA. "Impact Of Capital Structure Components On Financial Performance Of Listed Companies In Nigeria" Repository.mouau.edu.ng (2022). Accessed 26 Jan. 2023. https://repository.mouau.edu.ng/work/view/impact-of-capital-structure-components-on-financial-performance-of-listed-companies-in-nigeria-7-2

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