Effect of Capital Structure on Firms Performance in Nigeria

The lack of precise methodology to determine the capital structure mix on firm performance has generated a lot mixed results. Empirical studies from emerging nations revealed scarcity empirical findings measures with significant impact performance. This paper examines manufacturing firm’s in Nigeria. Using annualized panel data for sample 15 quoted firms diverse sectoral classifications 1999-2018. Excluding financial due uniqueness their and strict legal requirements financing choices. study focus non-financial firms. Capital book value market firm. Results indicate that proxy by ROE, Tobin’s Q, significantly influence SDTA, SIZE, LDTA, TDTA while ROA negatively influences D_E, TDTA. Findings robust relationship between Q compared other value. is better measure within period under review. reveals Nigerian are keenly financed short‐term debt supporting Pecking Order Theory. It’s vital note no single theory can sufficiently explain effect