The Effect Of Capital Structure On The Profitability Of Quoted Insurance Companies In Nigeria:- Ndukwe, Amanda A

ABSTRACT

Capital structure decisions arc among the most significant finance decisions companies encounter. It has been long debated whether capital structures are influential on costs of capital and firm values. In all aspects of capital investment decision, the capital structure decision is the vital one since the profitability of an enterprise is directly influenced by such decision. Therefore, proper care and attention need to be given while determining capital structure decision. Capital structure has an imperative impact on a company profitability hence the decision on debt to equity remains paramount. In order for financial institutions to maximize profit, a judicious combination or mix of debt to equity is of great concern. Hence, the aim of this study was to examine the impact of financing decision on profitability of some insurance companies in Nigeria with an emphasis on core business operations profitability. From this study, capital structure has been established to remain vital to profitability of businesses in N.'geria. This project has established that capital structure has a significant effect on financial performance of an entity. So every company should execute efficient capital structure to make profit and ensure going concern.