EFFECT OF CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE ONQUOTED CONSUMER GOODS FIRMS IN NIGERIA
Aliyu Aliyu Nahuche, Murtala Aliyu Ibrahim and Adamu Garba Zango
Volume 2 Issue 2
Abstract
paper empirically investigated the effect of capital structure and financial performance on consumer goods firms listed on the floor of the Nigerian stock exchange from the period of 2016 - 2020. The study is quantitative in nature, and the tool of analysis employed is the multiple linear regression technique. Results indicate strong relationship between all the capital structure components and return on assets. The t-test hypothesis discovered that capital structure variables have significant effect on financial performance measured by return on assets. This study recommends that listed consumer goods companies in Nigeria should research a suitable mix of capital structure components in line with the agency theory postulations. Managers should further critically analyse the appropriate debt-equity mix suitable for their entities in order to gain the benefits of debt-equity mix in line with the pecking order theory so as to ensure adequate shareholder returns on assets. Keywords: Capital Structure, Financial Performance, Nigeria Stock Exchange, Return on Assets.
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