Capital Structure and the Performance of Financial Companies In Nigeria

Abstract

Capital structure / base is important in the business affairs of any financial company as it is the overall source of finance used by a company in financing its operations and has been considered as one of the most important factors in firm financing policy due to its crucial role in corporate performance. The study sought to examine the capital base in relation to the performance of financial companies in Nigeria from 1980 -2018. The research design adopted was ex-post facto using four models to analyze the impact of capital structure and performance of finance companies. Descriptive statistics and regression were used as tools of analysis. The study reveals that there are statistically significant and non-significant effects of capital structure on performance variables. Finally, the study recommends that finance companies should adopt balanced capital structure strategy that will optimize the performance and corporate value of finance companies. Keywords: Board Size, Board Ownership, Corporate Governance, Performance, Nigeria