IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 8 NO. 7 2022
DOI: https://doi.org/10.56201/jafm.v8.no7.2022.pg81.100

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Effect of Capital Structure on the Performance of Brewery Firms in Nigeria

Ubesie, Madubuko Cyril, Chime, Uchenna Augustine, Joshua Andrew, Okoh Isaac Chibuzo

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Abstract

The impact of capital structure on the performance of Nigerian brewery firms was investigated in this study. The precise aims for this research were as follows: determine the effects of long- term debt financing, short-term loan financing, and equity financing on the profit for the year of brewery enterprises in Nigeria. It was decided to use an ex – post facto study design. The study's analytical technique was a random panel regression model, with descriptive statistics and the unit root test as preliminary tests. Long-term loan financing, short-term debt financing, and equity financing all have a substantial impact on the profit of Nigerian brewery enterprises for the year. The study concluded that a firm's capital structure should be carefully constructed to protect the interests of stock holders, shareholders, and the firm's financial needs.

keywords:

Capital Structure, long term debt financing, short term debt financing, equity financing and profit for the year

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