DETERMINANTS OF CAPITAL STRUCTURE CHOICE

Abstrak

This study investigates the determinants of capital structure choice of listed non-financial firms in Nigeria. The broad objective of this study is to examine whether profitability determines capital structure choice of listed non-financial firms in Nigeria and to evaluate whether firm size determines capital structure choice of listed non-financial firms in Nigeria. The secondary source of data collection was adopted in the study where the purposive sampling technique was used to select a sample size of sixteen (16) non-financial firms listed in the Nigerian Exchange Group. Ordinary Least Square regression method was used to analyze the variables in this study using STATA and the findings revealed that profitability has significant effect on capital structure choice of listed non-financial firms in Nigeria and that firm size has significant effect on capital structure choice of listed non-financial firms in Nigeria. The study recommends among others that Nigeria national assembly should pass a law that makes it mandatory for corporations which operate in Nigeria to list on the Nigerian Group Exchange (NGX) to attract investors into the market to raise market participation, liquidity, capitalization and depth to impact positively on economic growth in Nigeria.

Kata Kunci