Capital Structure and Performance of Quoted Non-Financial Firm in Nigeria (2015 – 2019)

This study investigated the effect of capital structure on corporate performance of quoted non-financial institutions in Nigeria. In specific term, the effect of debt, equity and debt equity mix on Return on Asset (ROA), Return on Equity (ROE) and Tobin’s Q of quoted non-financial institutions. The work used the ex post facto research design. The population of the study is 101 non-quoted financial institutions in Nigeria. The sample of the study is 34 selected non-financial quoted firms. The model specification of regression model was formulated to capture the effect of the dependent variable on the independent variables. The fixed effect model, random effects model and pooled Ordinary least square (OLS) models were used. The result of the study showed that capital structure has no significant impact on return on asset, return on equity and Tobin’s Q. The study concluded that debt, equity and debt equity mix do not significantly impact return on asset, return on equity and Tobin’s Q. The findings showed that quoted companies in Nigeria do not use much of long-term debt in their respective capital structure choices. Therefore, the study recommend that the Nigerian Stock Exchange should strive to remove any rigid policies which could hinder the effective participation of the companies.