CAPITAL STRUCTURE AND PERFORMANCE OF QUOTED CONGLOMERATES FIRMS IN NIGERIA
CAPITAL STRUCTURE AND PERFORMANCE OF QUOTED CONGLOMERATES FIRMS IN NIGERIA
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Date
2014-01
Authors
LAWAL, Tajudeen
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Abstract
This study investigates the impact of capital structure on the performance of quoted
conglomerates firms in Nigeria by analyzing the relationship between financial performance
measured by return on asset (ROA), earnings per share (EPS) and net margin (NM) with Short
term debt and long term debt. Two variables also identified in literature to have influence on
firm performance, namely size and efficiency are used as control variables. The study covers
seven (7) conglomerates firms in Nigeria for the year 2002 through 2011. Panel data for the
selected firms were generated and analysed using Generalised least square (GLS) with the
application Random effect regression model as a method of estimation. The study reveals that
short term debt has significant negative impact on all the three accounting measure of
performance studied. The result also reveals that long term debt has significant negative impact
on both return on asset (ROA) but not significant with respect to earnings per share (EPS) and
net margin (NM). The study concludes that capital structure has significant negative impact on
financial performance of quoted conglomerates firms in Nigeria for the period under study.
Therefore, it is recommended that quoted conglomerates firms in Nigeria should reduce debt
levels in their capital structure so as to enhance their financial performance.
Description
Being a Thesis submitted to the School of postgraduate
studies, Ahmadu Bello University, Zaria in partial
fulfillment of the Requirements for the award of Master of
science (M.sc) Degree in Accounting and Finance.
Department of Accounting
Faculty of Administration
Ahmadu Bello University
Zaria - Nigeria
January, 2014
Keywords
QUOTED CONGLOMERATES,, CAPITAL STRUCTURE,