CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF QUOTED CONSUMERS GOODS MANUFACTURING COMPANIES IN NIGERIA

Abstract

The study investigated capital structure and financial performance of quoted consumers goods manufacturing companies in Nigeria. The researcher adopted descriptive statistics to ascertain the central tendency of each of the variables under study. Pearson product moment correlation coefficient was also used to ascertain the correlation strength and ordinary least square multiple regression techniques was used to analyze the secondary data extracted from fourteen (14) companies listed on Nigeria Exchange Group within the period of 2015 to 2020. The research questions were analyzed using mean and standard deviation and the hypotheses were tested using simple bivariate regression analysis at a significant level of 0.05 degree. The results of the findings were that; capital structure has positive relationship with financial performance of quoted consumers goods manufacturing companies in Nigeria. Following the results of the findings, the researcher concluded among others, that debt capital and equity capital are the variables of capital structure that contribute in influencing financial performance of the quoted consumers goods manufacturing companies in Nigeria. The researcher recommended; that management should sustain the strategy adopted in getting a positive relationship on equity capital on profit level and to look at how well they can adopt the same strategy in order to find ways  to ensure that the weak positive relationship can attain a strong positive relationship.