The impact of capital structure on firm performance: empirical evidence from Nigeria
This study examines the capital structure and firm performance evidence from Nigeria. The study employed a sample size of 100 non-financial firms of listed Nigerian companies in the Nigerian Stock Exchange (NSE) for a period of 2010 to 2014. The annual financial statements have been examined using...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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2016
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| Online Access: | https://repo.uum.edu.my/id/eprint/25789/1/IOSR-JEFF%207%204%20III%202016%2023%2030.pdf |
| _version_ | 1825805356084756480 |
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| author | Dada, Ajayi Oziomobo Ghazali, Zahiruddin |
| author_facet | Dada, Ajayi Oziomobo Ghazali, Zahiruddin |
| author_sort | Dada, Ajayi Oziomobo |
| collection | UUM |
| description | This study examines the capital structure and firm performance evidence from Nigeria. The study
employed a sample size of 100 non-financial firms of listed Nigerian companies in the Nigerian Stock Exchange (NSE) for a period of 2010 to 2014. The annual financial statements have been examined using a panel data approach to analyse the empirical study. However, Tobin’s Q and ROA are used as a proxy for the firm performance. It was found out that assets turnover and, tangible have a positive and significant relationship with Tobin’s Q. Also, risk maintains negative and significant relations with Tobin’s. Moreover, the age of a firm has negative and significant with ROA and Sales growth maintains positive and significant with ROA. Nonetheless, the finding of this study would go a long way to enhance the literature on capital structure and also the imperative for the non-financial companies in Nigeria in taking capital structure decisions as it is based on the most recent data cover the period of recession of 2008-2009 as being an adverse effect of recession on the Nigerian nonfinancial companies. |
| first_indexed | 2024-07-04T06:30:59Z |
| format | Article |
| id | uum-25789 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:30:59Z |
| publishDate | 2016 |
| record_format | eprints |
| spelling | uum-257892019-04-01T00:30:46Z https://repo.uum.edu.my/id/eprint/25789/ The impact of capital structure on firm performance: empirical evidence from Nigeria Dada, Ajayi Oziomobo Ghazali, Zahiruddin HD28 Management. Industrial Management This study examines the capital structure and firm performance evidence from Nigeria. The study employed a sample size of 100 non-financial firms of listed Nigerian companies in the Nigerian Stock Exchange (NSE) for a period of 2010 to 2014. The annual financial statements have been examined using a panel data approach to analyse the empirical study. However, Tobin’s Q and ROA are used as a proxy for the firm performance. It was found out that assets turnover and, tangible have a positive and significant relationship with Tobin’s Q. Also, risk maintains negative and significant relations with Tobin’s. Moreover, the age of a firm has negative and significant with ROA and Sales growth maintains positive and significant with ROA. Nonetheless, the finding of this study would go a long way to enhance the literature on capital structure and also the imperative for the non-financial companies in Nigeria in taking capital structure decisions as it is based on the most recent data cover the period of recession of 2008-2009 as being an adverse effect of recession on the Nigerian nonfinancial companies. 2016 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25789/1/IOSR-JEFF%207%204%20III%202016%2023%2030.pdf Dada, Ajayi Oziomobo and Ghazali, Zahiruddin (2016) The impact of capital structure on firm performance: empirical evidence from Nigeria. IOSR Journal of Economics and Finance, 07 (04). pp. 23-30. ISSN 23215925 http://doi.org/10.9790/5933-0704032330 doi:10.9790/5933-0704032330 doi:10.9790/5933-0704032330 |
| spellingShingle | HD28 Management. Industrial Management Dada, Ajayi Oziomobo Ghazali, Zahiruddin The impact of capital structure on firm performance: empirical evidence from Nigeria |
| title | The impact of capital structure on firm performance: empirical evidence from Nigeria |
| title_full | The impact of capital structure on firm performance: empirical evidence from Nigeria |
| title_fullStr | The impact of capital structure on firm performance: empirical evidence from Nigeria |
| title_full_unstemmed | The impact of capital structure on firm performance: empirical evidence from Nigeria |
| title_short | The impact of capital structure on firm performance: empirical evidence from Nigeria |
| title_sort | impact of capital structure on firm performance empirical evidence from nigeria |
| topic | HD28 Management. Industrial Management |
| url | https://repo.uum.edu.my/id/eprint/25789/1/IOSR-JEFF%207%204%20III%202016%2023%2030.pdf |
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