Capital Structure and Corporate Financial Performance of Quoted Manufacturing Firms in Nigeria
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摘要
This study was carried out to examine the effect of Capital Structure on Corporate Performance of Quoted manufacturing firms in Nigerian from 2019-2023. Capital structure was proxied by total debt to total asset, total debt to total equity, short-term debt to total asset and long-term debt to total asset, while corporate performance was proxy by return on asset. The study adopted ex-post facto research design. Descriptive statistics, correlation, and regression analysis were used. Descriptive statistics was used to evaluate the characteristics of the data: and checks for normality. The correlation analysis was used to evaluate the relationship between the variables and to check for Multicollinearity. The multiple regression analysis was used to evaluate the effect of the independent variables on the dependent variable. The study findings, reveals that total debt to total asset structure, short- term debt to total asset, and long-term debt to total asset structure have an insignificant effect on the corporate performance of quoted manufacturing firms in Nigeria at 5% level of significant. While only total debt to total equity has significant effect on corporate performance of quoted manufacturing firms in Nigeria at 5% level of significance. The study concludes that total debt to total asset, total debt to total equity, short-term debt to total asset structure and long-term debt to total asset of structure of quoted manufacturing firms provided insights but statistically insignificant while total debt to total equity structure of quoted manufacturing firms proved relevant in determining corporate performance of manufacturing firms in Nigeria. The study recommends that Managers of manufacturing firms should invest more in building their total debt to total debt structure. The study also recommends that attention should be given by managers to equity capital structure. Since it is positive and significant because serve as the major source of capital.
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参考
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