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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

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 Structurelong term debt financingshort term debt financingequity financing and profit for the year

References

Andy, N., Chris, A. & Mike, K. (2002). The performance prism: the scorecard for measuring and managing business success, Cranfield School of Management. Abdul, G .K. (2012). The relationship of capital structure decisions with firm performance: a study of the engineering sector of Pakistan. International Journal of Accounting and Financial Reporting, 2(1), 2162-3082. Abdur, R. (2018). Corporate characteristics and leverage: evidence from Bangladesh, PSU Research Review, 2(1), 96 – 104. Abor, J. (2014). The effect of capital structure on profitability: an empirical analysis of listed firms in Ghana. The Journal of Risk Finance, 6(5): 438-445. Akintoye.R. (2008). Sensitivity of performance to capital structure. European Journal of social Science, 7(1), 36 - 44.

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