Download or read book Effect of Capital Structure on the Performance of Listed Consumer Goods Companies in Nigeria written by Mohammed Kakanda and published by . This book was released on 2016 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Managers of corporate entities are mostly in confrontation with the problem of; what combination of capital structure (equity and debt) will maximize returns and value of their firms? The study, therefore, aims at assessing the effect of capital structure on the financial performance of listed Consumer goods companies in Nigerian. All consumer goods companies quoted on the Nigerian Stock Exchange are considered the population for this study while seven (7) out of these firms whose accounting year-ends 31 December are considered as the sample. Secondary data was utilized from the annual financial reports of the sampled firms from the year 2008-2013, which was obtained from African Financial website and official website of Nigerian Stock Exchange. The study used ex-post facto research design to examine the relationship between independent and dependent variables while controlling for other variables. Descriptive statistics, correlation, and hierarchical multiple regression analyzes were carried out to test the hypotheses developed in the study. The study found that there is a positive and significant relationship between firm's capital structure and corporate financial performance. The study specifically found that short-term debt (STD) has no significance positive effect on return on equity (ROE) while Long-term debt (LTD) has positive relation and significant effect on ROE. The study recommends that firms should consider the mixture of equity and debt since they are major determinants of corporate performance. Authorities concerned should create an enabling business environment for companies (especially those with low capital) so as to have access to long-term debts to finance their operations and improve performance in the shortrun, instead of using high short-term debts to cushions for financing and profitability problems.

Download or read book The Effect of Financial Structure on the Performance of Nigeria Consumer Goods Firms written by Felix Echekoba and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study assesses the effect of financial structure on performance of consumer goods firms quoted in Nigerian Stock Exchange. In this study, twenty three (23) out of the twenty seven (27) firms were randomly chosen for the period 1993 to 2013. The study applied earnings per share and return on equity as performance indices. To add to this, total debt to total equity ratio, short term debt to total equity ratio were adopted to measure financial structure while tangibility, firm size, growth and risk were included as control variables capable of influencing performance. The effect of financial structure on performance was analysed using pooled ordinary least square, fixed effect and random effect regression technique. The results of the analysis divulged that financial structure represented by total debt to total equity ratio and short term debt to total equity ratio, negatively affect financial performance of consumer goods firms measured by earnings per share and return on equity. The negative effect of financial structure variables: total debt to total equity ratio and short term debt to total equity ratio tends to buttress that as result of agency conflict, performance of firms that are highly geared are negatively affected. The findings also were in conformity with the proposition of the pecking order theory that firm performance and financial structure are negatively correlated. This study concludes that financial structure has negative effect on financial performance of Nigeria consumer goods firms. In the light of this, we suggests that firm's management should established a debt-equity mix capable of improving financial performance notwithstanding the proxy adopted for assessing performance. Over investment in fixed assets should be discontinued and effective and efficient utilization of fixed assets vehemently upheld.

Download or read book Effect of Financial Leverage on Performance of Listed Firms in Nigeria written by Okolie Ugochukwu Jude and published by GRIN Verlag. This book was released on 2022-12-07 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Academic Paper from the year 2021 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 4.5, Ahmadu Bello University, language: English, abstract: This paper analyzes the effect of financial leverage on firms’ performance. The aim was to study the implications of financial leverage on firms performances. Also considering that maximizing accounting profit and maximizing shareholders value are not identical because of shareholders losses from agency costs, it was therefore pertinent to see how capital structure affect shareholders value. The objective of the study was to identify the possible effects of financing leverage on the performance of the company, to establish the relationship between leverage and corporate performance of listed firms in Nigeria, to determine the extent to which capital structure affect shareholders returns, to determine when the shareholder’s wealth can be said to have been maximized given a particular capital structure and to analyze the debt and equity which might result in over capitalization of the firm. The research was designed to collect data through a survey method from five listed firms - Dangote Sugar Refinery, Nestle, Flour Mills, Cadbury, and Nigerian Breweries. Descriptive design (percentages) was used to explain the effect of financial leverage on company’s performance; while analytical design (correlational statistical method) was used to establish the relationship between financial leverage and corporate performance.

Download or read book Effects of Capital Structure and Dividend Policy Decision on Corporate Performance written by and published by . This book was released on 2012 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Risk and Capital Structure Choice in Nigeria written by Oyesola Salawu and published by LAP Lambert Academic Publishing. This book was released on 2010-09 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study examined the effects of financial risk, firms' characteristics and macroeconomic factors on the capital structure and the rate at which firms adjust towards their target capital. Secondary annual panel data for the period of 1990 to 2006 using 70 non-financial listed companies for analysis were employed. Data were sourced from the Annual Report and Accounts of the sampled firms and the publications of Central Bank of Nigeria. Descriptive method and Generalized Method of Moment (GMM) were used to analyze data. The results indicate a positive coefficient between financial risk and capital structure and those Nigerian companies with higher financial risk tend to use more short-term debt in general. Also, profitability, tangibility, corporate tax rate, age of the firm, earning power, volatility, inflation and foreign direct investment, have significantly positive effects on capital structure. In addition, thirty-eight firms adjust fully to their target capital, while thirty-two over adjust. The study concluded that effective financial risk management and good financing policy decision would greatly improve firms' performance in Nigeria.

Download or read book Capital Structure and Performance of Quoted Firms in Nigeria written by Samson Olaniyan and published by . This book was released on 2015 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the effects of capital structure on performance of quoted non-financial firms in Nigeria between 1996 and 2014. The study employed both the first and second generation econometrics method of panel unit root test, principal component analysis, and Generalized Method of Moments. Using return on assets returns on equity, price earnings ratio, Tobin's Q, and constructed Performance Index as measures of firm performance and debt ratio as a measure of capital structure. Our result showed that capital structure has a negative and significant relationship with firm performance. The study concluded that the agency cost of the non-financial firms under the Nigerian Stock Exchange is very high and this leads to negative performance.

Download or read book Capital Structure And Firms Performance In Nigeria written by Yisau Abiodun Babalola and published by LAP Lambert Academic Publishing. This book was released on 2013-01 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: Survival of firms depends largely on improved performance but several factors both internal and external have culminated to influence the performance of firms. External factors include the poor macroeconomic and political environment of doing business while internal factors include poor corporate governance, lack of adequate capital and poor capital structure choice etc. Capital structures remain a strong factor driving the performance of firms; several firms had collapsed due to poor financial structure decisions. The results of the study are deemed to benefit the following primary users; external investors and shareholders who will be able to know how the capital structure of firms affects their performance and guide in making investment decisions. Professional manager would be better guided on how to achieve the company's objectives. Lenders may find the results useful in evaluating the firms' performance before giving loans and academicians will see new empirical evidence particularly in the finance literature emanating from an emerging economy like Nigeria.

Download or read book Capital Structure Decisions written by Yamini Agarwal and published by John Wiley & Sons. This book was released on 2013-03-29 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inside the risk management and corporate governance issues behind capital structure decisions Practical ways of determining capital structures have always been mysterious and riddled with risks and uncertainties. Dynamic paradigm shifts and the multi-dimensional operations of firms further complicate the situation. Financial leaders are under constant pressure to outdo their competitors, but how to do so is not always clear. Capital Structure Decisions offers an introduction to corporate finance, and provides valuable insights into the decision-making processes that face the CEOs and CFOs of organizations in dynamic multi-objective environments. Exploring the various models and techniques used to understand the capital structure of an organization, as well as the products and means available for financing these structures, the book covers how to develop a goal programming model to enable organization leaders to make better capital structure decisions. Incorporating international case studies to explain various financial models and to illustrate ways that capital structure choices determine their success, Capital Structure Decisions looks at existing models and the development of a new goal-programming model for capital structures that is capable of handling multiple objectives, with an emphasis throughout on mitigating risk. Helps financial leaders understand corporate finance and the decision-making processes involved in understanding and developing capital structure Includes case studies from around the world that explain key financial models Emphasizes ways to minimize risk when it comes to working with capital structures There are a number of criteria that financial leaders need to consider before making any major capital investment decision. Capital Structure Decisions analyzes the various risk management and corporate governance issues to be considered by any diligent CEO/CFO before approving a project.

Download or read book Impact of Capital Structure on the Financial Performance of Nigerian Firms Oman Chapter of Arabian Journal of Business and Management Review 2012 Vol 1 No 12 written by Osuji Casmir Chinaemerem and published by . This book was released on 2012 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capital Structure and Firm Value in Nigeria Evidence from Selected Quoted Firms written by Marcel Okeke and published by . This book was released on 2020 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study examined the effect of capital structure on firm value of selected quoted firms in Nigeria. It adopted long term debt, equity capital, as independent (x) variables of capital structure while Tobin Q was used as proxy for firm value the dependent variable. It adopted ex-post facto research design. The statistical package used for the analysis was e-view version 8.0. The population of the study was firms drawn from conglomerate and consumer goods sectors of Nigeria Stock exchange for a period of nine (9) years 2007-2015. Descriptive statistics, correlation and ordinary least square (OLS) of multiple regression analysis were used to test the hypotheses formulated to guide the study. The coefficient of determination R2 showed that 65% systematic variations in firm value could be explained by the independent variables. The F value (62.44647) was significant at 1% which means that the parameters estimated were statistically significant in explaining the effect of the independent variables on the dependent variable. The study therefore, concluded that capital structure with regard to long term debt was negatively but statistically significant to firm value, while equity capital was positively insignificant to firm value. The study recommended that firms should be more concerned with management of equity capital in business financing since it is more related to the value of the firm.

Download or read book Applied Corporate Finance written by Aswath Damodaran and published by John Wiley & Sons. This book was released on 2014-10-27 with total page 663 pages. Available in PDF, EPUB and Kindle. Book excerpt: Aswath Damodaran, distinguished author, Professor of Finance, and David Margolis, Teaching Fellow at the NYU Stern School of Business, has delivered the newest edition of Applied Corporate Finance. This readable text provides the practical advice students and practitioners need rather than a sole concentration on debate theory, assumptions, or models. Like no other text of its kind, Applied Corporate Finance, 4th Edition applies corporate finance to real companies. It now contains six real-world core companies to study and follow. Business decisions are classified for students into three groups: investment, financing, and dividend decisions.

Download or read book The Impact of Financial Structure on Firm Performance written by Felix Echekoba and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the impact of financial structure on performance of agricultural and healthcare firms listed in Nigerian Stock Exchange for a period of twenty one (21) years 1993 to 2013. This study selected fifteen (15) out of the sixteen (16) firms listed on agricultural and healthcare sectors. Data were collected from the Nigerian Stock Exchange factbook of various issues as relevant and were analysed using the pooled OLS, fixed, random effect models and the granger causality test. Financial structure was surrogated by total debt to total equity ratio, short term debt to total equity and total debt to total assets ratio while firm performance was measured by return on assets, return on equity, earnings per share and profit before tax. The analysis for the agricultural firms revealed that financial structure significantly impacts on earnings per share but does not impact on return on equity, return on asset and profit before tax. For healthcare firms, financial structure significantly impacts on earnings per share and profit before tax but does not impact on return on equity and return on assets. On the impact of the control variables on performance, it was observed that it is only risk that is significant in determining performance of agricultural firms while tangibility, size, growth and tax are significant factors that impact on performance of healthcare firms. To this effect, we suggests that it is very crucial for firm's management to carefully look at the debt-equity mix, which according to the result of the study, significantly impacts on performance of firms in agricultural and healthcare sectors.

Download or read book Capital Structure written by Ahmed Riahi-Belkaoui and published by Praeger. This book was released on 1999-02-28 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: This text uses theoretical and contingency approaches to examine the question of whether capital structure can be determined. Using a bond rating model it looks at the evaluation of capital structure, the resolution of issues pertaining to equity and liabilities, and their contribution to reports

Download or read book The Influence of Financing Mix on Corporate Performance in Nigeria written by Felicia Uchehara and published by . This book was released on 2019 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the influence of Financing Mix (Capital Structure) on Corporate Performance in Nigeria using a disaggregated approach. To carry out this research we employed a disaggregated approach using sample of twenty-seven firms listed on the Nigerian Stock Exchange during the seventeen-year period, 1996- 2013 and a model with the necessary policy variables was constructed. Panel data for the selected firms are generated and analyzed using Ordinary Least Squares (OLS) as a method of estimation. Our result reveals that a firm's capital structure represented by Debt Ratio, DR has a significantly negative impact on the Return on Asset (ROA) and Return on Equity (ROE) (firm's performance proxies). Also the relationship between ROA and firm's asset tangibility is negative and significant at 1% level being wrongly signed, against a priori expectations. This shows that firms with high ratio of tangibility have a lower financial performance ratio. The results also show that the size and growth of firm are correctly signed consistent with Myers and Majluf (1984). The study by these findings indicate consistency with previous empirical studies and provide evidence in support of Agency cost theory. The author recommended among others that firms should identify other relevant factors that influence corporate performance other than debt. Such factors as Corporate governance, quality management, Size of the firm, Tangibility, growth etc. It is also necessary that firms understand their conditions, analyze their debt capacities, look at the need to maintain comparability with firms in the same industry before making the final decision regarding their capital structure; and especially when presented with attractive new growth opportunities.

Download or read book Dynamic Analysis of the Impact of Capital Structure on Firm Performance in Nigeria written by Olumuyiwa Yinusa and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Governance and Organisational Performance written by Naeem Tabassum and published by Springer Nature. This book was released on 2020-06-28 with total page 335 pages. Available in PDF, EPUB and Kindle. Book excerpt: Establishing a corporate governance strategy that promotes the efficient use of organisational resources is instrumental in the economic growth of a country, as well as the successful management of firms. This book reviews existing literature and identifies board structural features as key variables of an effective corporate governance system, establishing a multi-theoretical model that links Board structural characteristics with firm performance. It then, using a comprehensive empirical study of 265 companies listed on the Karachi Stock exchange, tests this conceptual model. This research serves as a significant milestone, reflecting the socio-economic setting of emerging economies, and highlighting the need for the corporate sector in emerging markets to move away from a 'tick-box' culture. It argues that the sector needs to implement corporate governance as a tool to mitigate business risks; appoint and empower non-executive directors to achieve an effective monitoring of management; and establish their own ethical and governance principles, applicable to the Board of Directors. Based on an extensive data base, collected painstakingly over five years, this book offers new insights and conceptual framework for further research in this area. Given the breadth and width of the research, it is a useful source of future reference for students, researchers and policy makers.

Download or read book Business Risk and Capital Structure in Nigerian Listed Firms written by Dauda Mohammed and published by LAP Lambert Academic Publishing. This book was released on 2011-04 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: Nigeria has one of the most difficult business environments with poor infrastructure especially electricity, water and road network.Electricity supply in particular, coerces Nigerian companies to incur standby power generators.Consequntly the overheads of maintaining generators, fuel, spare parts increases their earnings volatility(business risk). To this end, corporate capital structure theories including the trade-off theory have suggested that higher levels of earnings uncertainty in a firm will increase the probability of financial distress and the chances of the company becoming bankrupt.This study is the first to consider the levrage effect of earnings volatility for a panel of ninety four Nigerian companies listed on the stock exchange of an oil depedent emerging economy.This understanding is important from the persepective of financial market structure, investments and government regulations. It will therefore provide a guide for financial theorists and professionals or anyone else who may be interested in utilizing a less complicated econometric and statistical models in analysing corporate financing decisions.