(+234)07060722008 
sales@graciousnaija.com
CHAPTER
ONE
INTRODUCTION
1.1 Background to the Study
Financing
decisions are one of the most critical areas for finance managers. It has
direct impact on capital structure and financial performance of the companies
(Gupta, Aman and Sharma, 2010, Rahemen, Zulfiqar and Mustafa, 2007). It is a
topic that continues to keep researchers pondering. Capital structure refers to
the various financing options of the asset by a firm. A business concern can go
for different levels of the mixture of equity, debt and other financial
facilities with equity having the emphasis on maximizing the firm’s value
(Uremadu, 2012).Capital structure is directly related to the financing decision
of the company. Primarily, it consists of the debt and equity used to finance
the firm.
Researchers
continue to analyze capital structures and try to determine whether optimal
capital structures exist. An optimal capital structure is usually defined as
one that will minimize a firm's cost of capital, while maximizing shareholder’s
wealth (Gupta, Aman and Sharma, 2010). Hence, capital structure decisions have
great impact on the financial performance of the firm.
The
historical attempt to building theory of capital structure began with the
presentation of a paper by Modigliani and Miller (MM) (1958). They revealed the
situations under what conditions that the Capital Structure is relevant or
irrelevant to the financial performance of the listed companies. Most of the
decision making process related to the Capital Structure are deciding factors
when determining the Capital Structure. A number of issues e.g. cost, various
taxes and rate, interest rate have been proposed to explain the variation in
Financial Leverage across firms (Van Horne, 1993; Hampton, 1998; Titman and
Wessels, 1998). These issues suggested that, depending on the attributes that caused
the cost of various sources of capital, the firm’s select Capital Structure
that has benefits related to debt and equity financing. This study is A modest
attempt aimed at examining the relationship between capital structure and firm
performance using data from the manufacturing sectors in Nigeria.
1.2 Statement of the Problem
The issue of capital structure has
been a subject of major concern for researchers, scholars, financial and
non-financial firms in recent years. Since the performance of manufacturing
companies is important to the development of any economy, several studies have
been conducted on the determinants of capital structure and its impact on the
performance of listed firms. Most of the studies conducted in the past [see Jerisem
and Meckling (1976), Leland (1980), Black and Cox (1976), Deangelo and Masulis,
(1980), Horakimian, Opler and Titman (2001)] to examine the relationship between
capital structure and firm’s performance focused on developed economies of
Asia, Europe and America.
In Nigeria, there exist a handful of
studies that consider investigating the relationship between capital structure
and firm’s performance [see Chimaemerem and Odita (2012), Babalola, (2012),
Muritala, (2012), Lawarere and Auinyele (2010)], however, most of these studies
focus their investigation mostly on firms in the banking sector, and some same
manufacturing sector of the economy. This study therefore is a modest attempt
to fill this hitherto existing research niche by empirically examining the
relationship between capital structure and performance of manufacturing firms’
from different sectors of the economy such as oil and gas, cement cosmetics,
food and beverages and breweries.
1.3 Objectives of the Study
The objective of this study is to
examine the relationship between capital structure and the performance of
manufacturing companies listed on the Nigerian stock exchange (NSE). The
objectives of the study can be broken down as follows:
TABLE OF CONTENTS
Title
Page - - - - - - - - - - i
Declaration - - - - - - - - - ii
Approval
Page - - - - - - - - - iii
Dedication - - - - - - - - - iv
Acknowledgements - - - - - - - - vi
Table
of Contents - - - - - - - - vii
List
of Tables - - - - - - - - - x
Abstract - - - - - - - - - - xi
CHAPTER ONE:
INTRODUCTION
1.1 Background to the Study - - - - - - 1
1.2 Statement of the Problem - - - - - - 3
1.3
Objectives of the Study - - - - - - 4
1.4 Research Questions - - - - - - - 5
1.5 Research Hypotheses - - - - - - 5
1.6 Significance of the Study - - - - - - 6
1.7
Scope
of the Study - - - - - - - 7
CHAPTER TWO: REVIEW OF
RELATED LITERATURE
2.1 Introduction - - - - - - - - 8
2.2 Conceptual of Capital Structure- - - - - 8
2.3 Theoretical Framework - - - - - - 11
2.4 Determinant of Capital Structure- - - - 18
2.5 Concept of Performance Measure in Capital
Structured
Firm - - - - - - - - - - 32
2.6 Empirical
Review - - - - - - - - 33
CHAPTER THREE: RESEARCH METHODOLOGY
3.1
Introduction - - - - - - - - 46
3.2
Research
Design - - - - - - - 46
3.3 Population of the Study - - - - - - 47
3.4 Sample Size and Sampling Techniques - - - 47
3.5 Sources of Data - - - - - - - - 48
3.6 Data Analysis Techniques - - - - - - 49
3.7 Definition of Variables employed in the
Study - - 50
3.8 Model Specification - - - - - - - 52
CHAPTER FOUR: DATA
PRESENTATION, ANALYSIS AND INTERPRETATIONS OF RESULTS
4.1
Introduction - - - - - - - - 55
4.2 Data Presentation and Analysis - - - - - 56
4.3 Test of Research Hypotheses - - - - - 69
4.4 Discussion of Findings - - - - - - 71
CHAPTER FIVE: SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1 Introduction - - - - - - - - 74
5.2 Summary
of Findings - - - - - - - 74
5.3 Conclusion - - - - - - - - 75
5.4 Recommendations - - - - - - - 76
5.5 Limitations of the Study - - - - - - 77
5.5 Suggestions for Further Research - - - - 79
References - - - - - - - - 81
Appendices - - - - - - - - 88
LIST
OF TABLES
Table 4.1 Descriptive Statistics- - - - - - 59
Table 4.2 Correlations Matrix - - - - - - 63
Table 4.3 Model Summary - - - - - - 64
Table 4.4 Coefficients - - - - - - - 67
TOPIC: AN EVALUATION OF CAPITAL STRUCTURE AND PROFITABILITY OF BUSINESS ORGANISATIONS, A STUDY OF SELECTED QUOTED COMPANIES IN NIGERIA
Chapters: 1 - 5
Delivery: Email
Delivery: Email
Number of Pages: 65
Price: 3000 NGN
In Stock
No comments:
Post a Comment
Add Comment