FIRM SIZE AS A MODERATOR TO CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF LISTED COMSUMERS GOODS MANUFACTURING COMPANIES IN NIGERIA

Abstract

From the time when the innovative work of Modigliani and Miller (1958) on the relevance and irrelevance of capital structure, researchers in corporate financial theory have always been interested in the contributory effect of capital structure on financial performance and value of the firm. The conventional thinking from the theories propounded since then was premised on underlying relationship that capital structure choice determines or affect performance thereby impact on the value of the firm. The study examined how firms moderate between capital structure and financial performance of listed consumer goods manufacturing companies in Nigeria. The study recommended that the management of Nigerian listed Consumer Goods Manufacturing Companies should work very hard to optimize the capital structure of their listed manufacturing firms to increase the financial performance. They can do that through ensuring that their capital structure is optimal; the Management of Nigerian listed Consumer Goods Manufacturing Companies should increase their commitments into short-term debt to total asset to improve financial performance from their business operation.