Capital Structure and Firm Performance in Nigeria

  • Ihenyen Confidence Joel Department of Accounting, Niger Delta University Amassoma, Bayelsa State
  • Joseph Idumesaro Department of Accounting, Niger Delta University Amassoma, Bayelsa State
Keywords: Capital structure, Firm performance, Long-term debts, Short-term debts, Return on assets, Nigeria


This study analysed how the capital structure of Nigerian Exchange Group-listed industrial companies affected their financial results. Capital structure was estimated using data on long-term debt to short-term debt ratios, and company performance was estimated using return on assets. Thirty-one (31) manufacturing companies were surveyed between 2012 and 2021, and the analytical approach consisted of descriptive and inferential statistics. The study's findings indicated that the ratio of short-term to long-term debt had a substantial, beneficial effect on the performance of manufacturing companies. Findings suggest that manufacturing company management should improve short- and long-term debt ratios by making the best use of available resources to increase the company's value for its shareholders. In addition, industrial companies should finance their capital structure using short-term obligations rather than long-term debts.


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How to Cite
Joel, I. C., & Idumesaro, J. (2023). Capital Structure and Firm Performance in Nigeria. Central Asian Journal of Innovations on Tourism Management and Finance, 4(2), 91-96.