Capital Structure Choices in Services Firms: Empirical Results from Nigeria Listed Companies
The effects of the worldwide economic slump, which was largely triggered by SARS-CoV-2, have undermined the profitability of businesses. As a result, the overarching goal of this research is to look into the impact of capital structure choices on the financial performance of services firms quoted on...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
UUM Press
2023
|
| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/30057/1/JES%2005%2002%202023%2083-102.pdf https://doi.org/10.32890/jes2023.5.2.5 |
| _version_ | 1825806109504438272 |
|---|---|
| author | Abdulwahab, Usman Muhammad Mu’azu, Saidu Badara Idris, Ahmed Aliyu Abubakar, Umar |
| author_facet | Abdulwahab, Usman Muhammad Mu’azu, Saidu Badara Idris, Ahmed Aliyu Abubakar, Umar |
| author_sort | Abdulwahab, Usman Muhammad |
| collection | UUM |
| description | The effects of the worldwide economic slump, which was largely triggered by SARS-CoV-2, have undermined the profitability of businesses. As a result, the overarching goal of this research is to look into the impact of capital structure choices on the financial performance of services firms quoted on the Nigerian Exchange Group (NGX). With an adjusted population of 11 listed services firms in Nigeria, the analysis spans from 2011 to 2020. The secondary data was collected from the annual reports of the selected enterprises and African financials, using an ex-post facto design. The generalised least square model was employed for the analysis of the data. While both retained earnings and total debt have a positive and significant influence on earnings per share, short-term and long-term debts, and equity were insignificant, according to the findings. The study, on the other hand, suggests that company executives save earnings to be spent solely on rainy days in order to minimize negative shocks that could harm a company's going-concern objective. |
| first_indexed | 2024-07-04T06:43:34Z |
| format | Article |
| id | uum-30057 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:43:34Z |
| publishDate | 2023 |
| publisher | UUM Press |
| record_format | eprints |
| spelling | uum-300572023-11-28T13:34:51Z https://repo.uum.edu.my/id/eprint/30057/ Capital Structure Choices in Services Firms: Empirical Results from Nigeria Listed Companies Abdulwahab, Usman Muhammad Mu’azu, Saidu Badara Idris, Ahmed Aliyu Abubakar, Umar HG Finance The effects of the worldwide economic slump, which was largely triggered by SARS-CoV-2, have undermined the profitability of businesses. As a result, the overarching goal of this research is to look into the impact of capital structure choices on the financial performance of services firms quoted on the Nigerian Exchange Group (NGX). With an adjusted population of 11 listed services firms in Nigeria, the analysis spans from 2011 to 2020. The secondary data was collected from the annual reports of the selected enterprises and African financials, using an ex-post facto design. The generalised least square model was employed for the analysis of the data. While both retained earnings and total debt have a positive and significant influence on earnings per share, short-term and long-term debts, and equity were insignificant, according to the findings. The study, on the other hand, suggests that company executives save earnings to be spent solely on rainy days in order to minimize negative shocks that could harm a company's going-concern objective. UUM Press 2023 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/30057/1/JES%2005%2002%202023%2083-102.pdf Abdulwahab, Usman Muhammad and Mu’azu, Saidu Badara and Idris, Ahmed Aliyu and Abubakar, Umar (2023) Capital Structure Choices in Services Firms: Empirical Results from Nigeria Listed Companies. Journal of Economics and Sustainability (JES), 5 (2). pp. 83-102. ISSN 2637-1294 https://e-journal.uum.edu.my/index.php/jes/article/view/17292 https://doi.org/10.32890/jes2023.5.2.5 https://doi.org/10.32890/jes2023.5.2.5 |
| spellingShingle | HG Finance Abdulwahab, Usman Muhammad Mu’azu, Saidu Badara Idris, Ahmed Aliyu Abubakar, Umar Capital Structure Choices in Services Firms: Empirical Results from Nigeria Listed Companies |
| title | Capital Structure Choices in Services Firms: Empirical Results from Nigeria Listed Companies |
| title_full | Capital Structure Choices in Services Firms: Empirical Results from Nigeria Listed Companies |
| title_fullStr | Capital Structure Choices in Services Firms: Empirical Results from Nigeria Listed Companies |
| title_full_unstemmed | Capital Structure Choices in Services Firms: Empirical Results from Nigeria Listed Companies |
| title_short | Capital Structure Choices in Services Firms: Empirical Results from Nigeria Listed Companies |
| title_sort | capital structure choices in services firms empirical results from nigeria listed companies |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/30057/1/JES%2005%2002%202023%2083-102.pdf https://doi.org/10.32890/jes2023.5.2.5 |
| work_keys_str_mv | AT abdulwahabusmanmuhammad capitalstructurechoicesinservicesfirmsempiricalresultsfromnigerialistedcompanies AT muazusaidubadara capitalstructurechoicesinservicesfirmsempiricalresultsfromnigerialistedcompanies AT idrisahmedaliyu capitalstructurechoicesinservicesfirmsempiricalresultsfromnigerialistedcompanies AT abubakarumar capitalstructurechoicesinservicesfirmsempiricalresultsfromnigerialistedcompanies |