International Journal of Advances in Management and Economics (IJAME)

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TitleAn Empirical Analysis of Capital Structure on Firms’ Performance in Nigeria
AuthorTaiwo Adewale Muritala
AbstractThis paper examines the optimum level of capital structure through which a firm can increase its financial performance using annual data of ten firms spanning a five-year period. The results from Im, Pesaran & Shine unit root test show that all the variables were non-stationary at level. The study hypothesized negative relationship between capital structure and operational firm performance. However, the results from Panel Least Square (PLS) confirm that asset turnover, size, firm’s age and firm’s asset tangibility are positively related to firm’s performance. Findings provide evidence of a negative and significant relationship between asset tangibility and ROA as a measure of performance in the model.

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