FIRM’S VALUE AND CAPITAL STRUCTURE: EVIDENCE FROM QUOTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

Abstract

Capital structure decision of a company may not solely have influence on firm’s profitability but also on company’s security value. In line with this statement, this research work examined the influence of capital structure on firm’s value of quoted industrial goods companies in Nigeria for the period of twenty years, 2000 to 2019. Secondary data gathered from financial statements of sampled companies were used. Findings of fixed effect model revealed that collectively all the variables used to capture capital structure in this study have strong and substantial influence on companies’ security value of sampled quoted industrial goods companies in Nigeria. The study recommends that management of quoted industrial goods companies should institute a perfect and efficient capital structure policy that will minimise the cost of capital, improve companies’ market value and maximise shareholders’ wealth.