CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS MANUFACTURING FIRMS IN NIGERIA
Keywords:Equity capital, debt capital, retained earnings and earnings per share
This study investigated the effect of capital structure on financial performance of listed industrial goods manufacturing firms in Nigeria. The study developed three specific objectives, three research questions as well as three hypotheses. The study adopted ex-post facto research design and population of the study consists of Twelve (12) industrial goods manufacturing firms listed on the Nigerian Exchange group as at 31stDecember 2022. Ten (10) listed industrial goods manufacturing firms were selected to constitute the sample size employing purposive sampling technique for a period of years (2013 – 2022) was collated. The source of data collection was secondary data sources which were extracted from the annual reports and accounts of the firms studied. The data collected was analysed using descriptive statistics, unit root test, diagnosis test and Panel least square regression analysis with the help of eviews 12. The regression results showed that, there is a significant effect of equity capital, debt capital and retained earnings on earnings per share of listed industrial goods manufacturing firms in Nigeria. The study generally concluded that there is a significant effect of capital structure and financial performance of listed industrial goods manufacturing firms in Nigeria from 2013 to 2022. The study recommended amongst others that listed industrial goods manufacturing firms in Nigeria should use more of debt capital because it increases their financial performance in term of earnings per share.