Abstract
The study examined the extent to which changes in capital structure affect the financial performance of consumer goods manufacturing firms in Nigeria. In addition to using the debt-to-equity ratio, short-term debt as a percentage of total assets, and long-term debt as a ratio of total assets as indicators of capital structure, the study also included firm size as a control variable in the model. The data was collected between 2013 and 2022 from a number of audited financial statement issues of the selected companies. The debt to equity ratio, short-term debt, and firm size all had a positive and significant impact on the firm's performance, according to the study, which employed the panel data regression technique in the context of ordinary least square. The study also found that firm size had a significant positive impact on the financial performance of manufacturing enterprises; therefore, management should put in more effort to increase the company's retained earnings in fat years so that they would have money to fall back on in tight years. On the other hand, long-term debt has a negative and statistically significant impact on financial performance for Nigerian manufacturing firms in the consumer goods industry. Also, before seeking additional capital for funding investment the firm should first consider short term debt in absence of internal source of funding. Finally, management may only consider long term capital structure if the benefits derived therefrom exceeds the costs.
Keywords
Capital Mix, Financial Performance, Consumer Goods Firms, Nigeria, Panel Data Regression
Citations
IRE Journals:
Isoso, Monday Chukwugeku (PhD), Ashibogwu, Nze Kingsley (PhD), Okpor, Grace Aruoriwo, Esuike, Benjamin, Irevwi, Ufuoma "Capital Mix and Performance of Consumer Goods Manufacturing Firms in Nigeria" Iconic Research And Engineering Journals Volume 9 Issue 2 2025 Page 1161-1168
IEEE:
Isoso, Monday Chukwugeku (PhD), Ashibogwu, Nze Kingsley (PhD), Okpor, Grace Aruoriwo, Esuike, Benjamin, Irevwi, Ufuoma
"Capital Mix and Performance of Consumer Goods Manufacturing Firms in Nigeria" Iconic Research And Engineering Journals, 9(2)
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