Capital Structure and Performance of Firms in Nigeria: A way out of Economic Recession

Olaniyan Samson Olajide (Ph.D); Lawal S. Adewale

Capital Structure and Performance of Firms in Nigeria: A way out of Economic Recession

;

British Journal of Management and Marketing Studies

Vol. 3Issue 22020pp. 50–68Published 19 May 2020

2,034Views

669Downloads

Metrics

Share Link

𝕏

Cite this

Citation unavailable for this article.

Abstract:

The study examined the relationship between capital structure and the performance of firms in Nigeria. Using returns on assets (ROA), returns on equity (ROE) and Tobin Q as measurements for firm performance, debt ratio was used as a proxy for capital structure. The data were collected from quoted firms on Nigerian Stock Exchange from 1988 to 2017. The panel data analysis revealed a positive significant relationship between capital structure and performance of firms in Nigeria. The study concluded that strengthen capital structure will improve the performance of real sectors in Nigeria, and this will improve the nation’s economic growth and development, and provide a way out of economic recession.

Keywords:5

Copyrights

Authors retain copyright in their articles and have unrestricted rights to reuse, republish, archive, share, and distribute their work after publication.
All articles are published open access under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence, which permits use, sharing, adaptation, distribution, and reproduction in any medium or format, including for commercial purposes, provided appropriate credit is given to the original author(s) and source.

Loading…

Disclaimer/Publisher’s Note

The statements, opinions and data contained in this publication are solely those of the author(s) and contributor(s) and not of AB Journals or its editors. AB Journals remains neutral and accepts no responsibility for any injury or damage resulting from ideas, methods, instructions or products referred to in the content.

Capital Structure and Performance of Firms in Nigeria: A way out of Economic Recession | AB Journals