FATOGUN, O. I and BALOGUN, SHERIF BABAJIDE (2019) CAPITAL STRUCTURE AND PERFORMANCE OF QUOTED MANUFACTURING COMPANIES IN NIGERIA. JOURNAL OF MANAGEMENT AND TECHNOLOGY, 15 (1). pp. 161-174.
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Abstract
This study evaluatesthe impact ofcapital structure onperformance of quoted manufacturingcompanies in Nigeria for a period of 15 years between 2003 and 2017. Scientific sampling procedures were employed to carefully select 10 manufacturing companies across 6 real sectors of Nigerian manufacturing industry with balanced panel data obtained. The study employed Panel (OLS) Regression techniques such as Fixed Effect Model and Random Effect Model at 5% level of significance. The study found no significant relationship between measures of capital structure and performance of listed Nigerian manufacturing for the period under review. Besides, the non significance of Hausman test revealed that RE was more appropriate. The study re-affirms the claim of M-M Approach that capital structure does not matter when it comes to firm’s performance in terms of operating efficiency and stock market efficiency. The study recommends that management should be careful when using debt as its source of financing its activities. Again, the management should seek to finance their activities with retained earnings and use debt as a last option
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Management |
| Depositing User: | Miss Ayomikun Ogunbadejo |
| Date Deposited: | 25 May 2020 18:39 |
| Last Modified: | 25 May 2020 18:39 |
| URI: | http://eprints.federalpolyilaro.edu.ng/id/eprint/226 |
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