International Journal of Social Science & Economic Research
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Title:
IMPACT OF CAPITAL STRUCTURE ON FIRMS' PERFORMANCE
(CASE STUDY OF SELECTED QUOTED COMPANIES IN NIGERIA)

Authors:
BABAJIDE, D. Adesina and OMOGBOYE, A. Michael

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BABAJIDE, D. Adesina and OMOGBOYE, A. Michael
Department of Banking and Finance, School of Management and Business Studies, Yaba College of Technology, Yaba, Lagos.

MLA 8
Adesina, BABAJIDE, D., and OMOGBOYE, A. Michael. "IMPACT OF CAPITAL STRUCTURE ON FIRMS' PERFORMANCE." Int. j. of Social Science and Economic Research, vol. 3, no. 11, Nov. 2018, pp. 5831-5849, ijsser.org/more2018.php?id=405. Accessed Nov. 2018.
APA
Adesina, B., & Michael, O. (2018, November). IMPACT OF CAPITAL STRUCTURE ON FIRMS' PERFORMANCE. Int. j. of Social Science and Economic Research, 3(11), 5831-5849. Retrieved from ijsser.org/more2018.php?id=405
Chicago
Adesina, BABAJIDE, D., and OMOGBOYE, A. Michael. "IMPACT OF CAPITAL STRUCTURE ON FIRMS' PERFORMANCE." Int. j. of Social Science and Economic Research 3, no. 11 (November 2018), 5831-5849. Accessed November, 2018. ijsser.org/more2018.php?id=405.

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Abstract:
Capital structures represent the financing choices open to corporate organizations. This issue of Capital structures has been identified as an immediate reason for business failure or lack of progress. In the process of finding optimum capital structure most suitable for an organization, the one that will enhances her performance company try out various alternatives of debt-equity ratio, with two extreme-100% equity; 0% debt or 0% equity: 100% debt. This study is set out to ascertain the impact of capital structure on organizational performance, that to determine relationship between capital structure and the organizational productivity and profitability in Nigeria. Data were sourced from secondary sources and it was analyzed using ordinary least square under certain assumption. It was discovered that debt in various format (Long or short term Loans) and equity make up the capital structure of the organization and these have much impact on organization productivity and profitability. Based on the findings, it is therefore recommended that further research should incorporate other variable that may influence the choice of capital structure in Nigeria like Inflation rate, Interest rate, capital formation, stock market development, financial stability of country and political stability of the country.