EFFECT OF CAPITAL STRUCTURE ON PROFITABILITY OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

📄 Project Abstract

For such a long time, the relationship between capital structure and firm's performance has conferred a puzzle in the world of finance. Researchers have looked into this puzzle and put forward controversial results. Financial managers are being provided with no clear-cut guideline on the optimum mix of capital structure elements which yields optimum firm performance. This study sought to examine the effect of capital structure on the profitability of listed industrial goods companies in Nigeria. The study covered all firms listed under the industrial goods sector in the Nigerian Stock Exchange over a 5-year period, from 2014 to 2018. Equity Finance and Firm Leverage represented capital structure indicators while Return on Assets (ROA) was used as a measure of firm performance. Firm size constituted the moderating variable. A correlational research design was adopted. Secondary data were collected from the firms' annual report and the corporate websites. The panel data was then analyzed...