IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA
Abstract
This study examined how capital structure influenced the financial performance of listed consumer goods firms in Nigeria. The study adopted an ex-post facto research design, relying on secondary data from 10 firms selected out of 21 listed on the Nigerian Exchange Group PLC between 2014 and 2023. The sample was selected using a judgmental-convenience sampling technique and a defined filtering criterion. Capital structure was measured using long-term debt and proprietary funds, whereas financial performance was evaluated through return on capital employed (ROCE). Data analysis was conducted using a generalized least squares regression analysis. The findings show that both the long-term debt ratio (LTDR) and proprietary funds (PROF) exert a positive and statistically significant influence on ROCE. The study concludes that long-term debt and proprietary funds are critical determinants of financial performance among the sampled firms and recommends that management pursue strategic approaches to long-term debt financing while ensuring the efficient use of proprietary funds to drive sustainable returns and improve operational efficiency.
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Published in INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION
ISSN: 3027-0378
This article appears in our peer-reviewed academic journal
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