Effects of Capital Structure on Financial Performance o f Food and Beverage Companies in Nigeria ( 2007 - 2016 )

UDEH, Sergius Nwannebuike and Ngwoke, Ogechukwu Maria (2019) Effects of Capital Structure on Financial Performance o f Food and Beverage Companies in Nigeria ( 2007 - 2016 ). International Academy Journal of Management, Marketing and Entrepreneurial Studies, 7 (1). pp. 48-64. ISSN 2382-7446

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Abstract

Abstract: The study examined effects of ca pital structure on financial performance of listed food and beverage companies in Nigeria. It specifically looked at the effects of short - term debt, long term debt and leverage on profitability of food and beverage companies in Nigeria from 2007 to 2016. S econdary data were collected from published financial statements of the five listed food and beverage companies in Nigeria. The study adopted ex - post facto research design in its methodology. Multiple regression analysis was employed with the aid of E - view statistical package. The study found that short term debt had a significant and positive effect on return on equity as a measure of corporate performance, among others. The implication of the findings is that the more borrowed funds these companies empl oy, the more interferences they will have on their ROE. It was concluded that short and long term debts have significant and positive effects on financial performance of food and beverage companies in Nigeria. It is recommended that companies should use e quity financing as a first - line approach in their business activities. Keywords : Capital structure, short term debt, long term debt, leverage, Nigeria.

Item Type: Article
Subjects: A General Works > AS Academies and learned societies (General)
H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Management and Social Sciences
Depositing User: Mr Sergius Udeh
Date Deposited: 15 May 2019 15:17
Last Modified: 15 May 2019 15:17
URI: http://eprints.gouni.edu.ng/id/eprint/1529

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