Home            Contact us            FAQs
    
      Journal Home      |      Aim & Scope     |     Author(s) Information      |      Editorial Board      |      MSP Download Statistics

     Asian Journal of Business Management

    Abstract
2015(Vol.7, Issue:1)
Article Information:

Another Look at Capital Structure and Corporate Performance in Emerging Markets: The Case of Nigeria

Sunday Igbinosa
Corresponding Author:  Sunday Igbinosa 
Submitted: ‎May ‎19, ‎2014
Accepted: June ‎18, ‎2014
Published: February 15, 2015
Abstract:
The paper explores the long and short run dynamic relationships between capital structure and firm’s performance variables based on financial statements’ data of (62) non-banking firms quoted on the Nigerian Stock Exchange. The study reveals that quoted firms use long term debts in the short run to boost profitability and earnings but in the long run, as they become more profitable, they resort to internal source of financing. It further reveals that while the combination of debt and equity capital that optimizes return on assets differ from that which optimizes return on equity, it submits that long term debts contribute positively and significantly to enhancing returns to equity owners. It recommends that a firm should determine the appropriate mix of capital that optimizes its own performance suggesting that the combination of debts and equity that optimizes return to equity owners should represent that optimum structure.

Key words:  Debt, equity, error correction mechanism, leverage, optimum capital structure, return on assets and return on equity,
Abstract PDF HTML
Cite this Reference:
Sunday Igbinosa, . Another Look at Capital Structure and Corporate Performance in Emerging Markets: The Case of Nigeria. Asian Journal of Business Management, (1): 1-12.
ISSN (Online):  2041-8752
ISSN (Print):   2041-8744
Submit Manuscript
   Information
   Sales & Services
Home   |  Contact us   |  About us   |  Privacy Policy
Copyright © 2024. MAXWELL Scientific Publication Corp., All rights reserved