scholarly journals Capital Structure and Financial Performance of Quoted Manufacturing Companies in Nigeria

2020 ◽  
pp. 874-880
Author(s):  
Samuel Adebayo Olaoye ◽  
Abolade Francis Akintola ◽  
Timothy Adisa Soetan ◽  
Netufo Cornelius Olusola
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Annual Reports ◽  
Capital Investments ◽  
Manufacturing Companies ◽  
Equity Financing ◽  
Ex Post ◽  
Ex Post Facto ◽  
Retained Earnings

The capital structure involves the decision about the combination of the various sources of funds a firm uses to finance its operations and capital investments. These sources include the use of long-term debt finance called debt financing, as well as preferred stock and common stock also called equity financing. One of the most important goals of financial managers is to maximize shareholder’s wealth through the determination of the best combination of financial resources for a company and maximization of the company’s value by determining where to invest their resources. The study evaluated the effect of capital structure on the financial performance of listed manufacturing companies in Nigeria. The study employed the ex post facto research design. The population of the study consisted of the quoted manufacturing companies in Nigeria made up of 71 companies as of 31st December 2017 according to the Nigeria Stock Exchange (NSE), which formed the entire population of the study. The study employed convenience sampling in the selection of the sampled companies. Data from the research were obtained from the annual reports of the sampled companies. The study adopted descriptive and inferential statistics. The finding of the study indicated that capital structure influences the performance of the quoted manufacturing companies in Nigeria. The study concluded that capital structure has a significant relationship with the financial performance of listed manufacturing companies in Nigeria. The study recommended that management should ensure that proper capital structure is maintained to improve financial performance and to allow for an increase in dividend payment and retained earnings for expansion.

scholarly journals FINANCIAL LEVERAGE AND FINANCIAL PERFORMANCE OF OIL AND GAS COMPANIES IN NIGERIA

2020 ◽  
Vol 1 (1) ◽  
pp. 28-44
Author(s):  
A. Abubakar
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Random Effects ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Annual Reports ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Retained Earnings ◽  
The Capital Structure

This study was carried out to determine the effect of financial leverage on the financial performance, using secondary data obtained from the annual reports of 7 quoted Oil and Gas firms in Nigeria, and the Nigerian stock exchange (NSE) daily official lists over the period 2005- 2016. Descriptive statistics such as mean, median, minimum, maximum, standard deviation, coefficient of variation, skewness and kurtosis were used in data presentation, while random effects panel estimator is applied in determining the effect of financial leverage variables as short-term debt ratio (STDR), long-term debt ratio (LTDR) and total-debt equity ratio (TDER) on the financial performance measured by the return on equity (ROE). The regression results from the random effects model (REM), the best panel estimator in this study as revealed by the F-test and the Hausman test for best model selection, indicate that STDR and LTDR have no significant effect on the financial performance, and TDER has a negative significant effect on the financial performance denoted by ROE. The study concludes that higher financial leverage in the capital structure of quoted Oil & Gas firms in Nigeria deteriorates shareholders wealth measured by ROE. The study recommends that firms in the Oil & Gas sector should substitute at least 90 per cent of debt in the capital structure with equity, through bonus issue, right issue and higher proportion of retained earnings in the capital structure. Abubakar, A. | Department of Business Management, Federal University Dutsin-Ma, Katsina State, Nigeria

scholarly journals Pengaruh Profitabilitas dan Ukuran Perusahaan terhadap Nilai Perusahaan dengan Struktur Modal sebagai Variabel Intervening (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia tahun 2017-2019)

2021 ◽  
Vol 21 (02) ◽  
Author(s):  
Dhian Andanarini Minar Savitri ◽  
Dian Kurniasari ◽  
Amos Mbiliyora
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Firm Value ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Manufacturing Companies ◽  
Ex Post ◽  
Ex Post Facto ◽  
Negative Effect ◽  
Report Data

ABSTRACT This study aims to analyze the factors that influence firm value with capital structure as a intervening variable in manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019.This research is a causal research with ex post facto type. The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. The sampling technique is purposive sampling, which is collecting samples with certain criteria as a benchmark for collection, so that a sample of 141 companies is obtained. Data collection techniques with the method of documentation that is analyzing the company's annual report. Data analysis techniques used to answer the research hypothesis are multiple regression which are operated through the SPSS program.The research shows that profitability and firm size has no effect on firm value, Profitability has a negative effect on capital structure, firm size has a positive effect on capital structure,capital structure has a negative effect on firm value, and capital structure has no proven to mediate the effect of profitability and firm size to firm value.

scholarly journals An Empirical Analysis of Firm Growth and Financial Performance of Selected Firms in Nigeria

2021 ◽  
Vol 4 (3) ◽  
pp. 150-161
Author(s):  
Okechukwu Theresa Ijeoma
Keyword(s):  
Financial Performance ◽  
Firm Growth ◽  
Annual Reports ◽  
Return On Equity ◽  
Beverage Industry ◽  
Ex Post ◽  
Food And Beverage ◽  
Ex Post Facto ◽  
Turn Over ◽  
Retained Earnings

This study empirically investigated on firm indicators and financial performance of food and beverage industry in Nigeria covering the period 2010-2019. In the course of the study, four companies namely Nigeria Breweries Plc, Guinness Nigeria Plc, Cadbury Nigeria Plc and Nestle Nigeria Plc were selected for the study. Panel data regression method was used for the method of data analysis and ex-post facto research design was adopted. Data for the study were extracted from the annual reports of the selected companies. The major findings of the study were that turn-over, retained earnings and total assets has a positive and significant effect on financial performance of the food and beverage companies in Nigeria. It is therefore the recommendation of this study that the management of food and beverage companies in Nigeria should adopt appropriate measures to ensure their turnover is maintained above par since it has effect on return on equity as seen from the findings of the study.

scholarly journals EFFECT OF LIQUIDITY RISK MANAGEMENT ON BANK FINANCIAL PERFORMANCE IN NIGERIA

2021 ◽  
pp. 19-34
Author(s):  
Blessing Ndum ◽  
Keyword(s):  
Risk Management ◽  
Regression Analysis ◽  
Financial Performance ◽  
Inflation Rate ◽  
Stock Exchange ◽  
Research Work ◽  
Liquidity Risk ◽  
Annual Reports ◽  
Ex Post ◽  
Ex Post Facto

This study ascertained the effect of annual inflation rate on bank financial performance in Nigeria. Ex-Post Facto research design was adopted. Data were extracted from annual reports and accounts of the selected banks in Nigeria. The population of the study comprises of all the twenty (20) deposit money banks operating in Nigeria as at the time of this research work. According to the Nigeria Stock Exchange (NSE), twenty (20) deposit money banks operate in Nigeria as at the end of year 2019. Regression analysis was employed to test the hypothesis with SPSS 20.0. The analysis shows that the annual inflation rate does not positively influence banks’ financial performance. Based on the result, the researcher recommended that banks should be able to anticipate inflation rate periodically to adjust their interest rate in order to make profit.

scholarly journals Performance Analysis of Nigerian Brewery Industry

2018 ◽  
Vol 9 (1) ◽  
pp. 47 ◽  
Author(s):  
Lucas O. Elumah ◽  
Peter Shobayo
Keyword(s):  
Performance Analysis ◽  
Capital Structure ◽  
Financial Performance ◽  
Research Design ◽  
Financial Risk ◽  
Stock Exchange ◽  
Financial Ratios ◽  
Reasonable Amount ◽  
Ex Post ◽  
Ex Post Facto

This research attempted to assess the financial performance of the firms in the brewery industry using financial ratios. It adopted a descriptive ex-post facto research design by using brewery firms of the Nigeria Stock Exchange (NSE) from 2011-2015. The result suggests that the brewery industry is profitable and efficient in using its asset to generate profit and return it to its shareholders. Similarly, the industry financial risk is relatively low, and manager in the industry manage their stocks efficiently. This suggests that managers of firms should endeavor to reduce the amount of debt in their capital structure and manage a reasonable amount of debt in its capital structure since a high debt implies a high financial risk.

scholarly journals Optimizing Return on Assets through Investment in Property, Plant and Equipment: Evidence from Listed Nigerian Manufacturing Companies

2020 ◽  
Vol 4 (10) ◽  
pp. 50-57
Keyword(s):  
Portfolio Management ◽  
Stock Exchange ◽  
Secondary Data ◽  
Growth Options ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Correlational Research ◽  
Ex Post ◽  
Ex Post Facto ◽  
Level Of Significance

This study examined the extent to which investment in property, plant & equipment (PPE) made by listed manufacturing companies in Nigeria relate with the return on assets (ROA). The non-usage of composite appraisal techniques, other than traditional budgeting techniques was seen as a major problem of investment decisions on PPE. The study adopted the quantitative panel methodology of the ex post facto and correlational research design. Secondary data were extracted from the fact books of the Nigerian Stock Exchange for the period, 2013 – 2018. The number of manufacturing companies listed in the Stock Exchange during this period was 83, which was also taken as the population of the study. The sample used in the study was 69. Three hypotheses were tested at 0.05 level of significance. Multiple and simple regression analyses were used on the data collected, to find the relationship between the independent and dependent variables. The hypotheses tested indicated in the findings that property, plant and equipment had a significant relationship with return on assets of listed manufacturing firms in Nigeria when there is a joint relationship between variables of property, plant & equipment (PPE) and return on asset (ROA). Based on the findings and conclusion, it was recommended that management of manufacturing companies should ensure a holistic use of all techniques, exploring the real and growth options analyses as well as portfolio management techniques involving productive non-current assets, to earn the benefit of return on assets invested.

scholarly journals INTENSITAS RESEARCH AND DEVELOPMENT, GOODWILL, INTELLECTUAL CAPITAL DAN PERFORMA FINANSIAL SEBAGAI PENENTU NILAI PERUSAHAAN

2021 ◽  
Vol 1 ◽  
pp. 296-306
Author(s):  
Ellen Monata Wahono ◽  
Shinta Permata Sari
Keyword(s):  
Research And Development ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Firm Value ◽  
Stock Exchange ◽  
Total Sample ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Fierce Competition ◽  
A Company

The increasingly fierce competition that occurs between companies in the  current  era of globalization is forcing the company to improve its strategies. Therefore, the main purpose of establishing a company is to increase the value of the firm. To achieve that purpose,managers have to understand the factors that can increase the value of the firms and also fulfillthe interests of stakeholders. This study aims to analyze the effect of Research and Development Intensity (RnD), Goodwill (GDW), Intellectual Capital (IC), and Financial Performance (PF) on Firm Value. The research data is obtained from  the  annual reports  of  manufacturing  companies  listed  on the Indonesia  Stock  Exchange  in 2015-2019 with a total sample of 60 after meeting certain criteria. The data is analyzed using multiple linear regression analysis.The results show that goodwill, intellectual  capital,  and financial performance have an effect on firm value. Meanwhile, the intensity of research and development has no effect on firm value The increasingly fierce competition that occurs between companies in the  current  era of globalization is forcing the company to improve its strategies. Therefore, the main purpose of establishing a company is to increase the value of the firm. To achieve that purpose,managers have to understand the factors that can increase the value of the firms and also fulfillthe interests of stakeholders. This study aims to analyze the effect of Research and Development Intensity (RnD), Goodwill (GDW), Intellectual Capital (IC), and Financial Performance (PF) on Firm Value. The research data is obtained from  the  annual reports  of  manufacturing  companies  listed  on the Indonesia  Stock  Exchange  in 2015-2019 with a total sample of 60 after meeting certain criteria. The data is analyzed using multiple linear regression analysis.The results show that goodwill, intellectual  capital,  and financial performance have an effect on firm value. Meanwhile, the intensity of research and development has no effect on firm value    

scholarly journals Assets mix and financial performance of listed consumer goods firms in nigeria

2021 ◽  
Vol 11 (1) ◽  
pp. 38-45
Author(s):  
Nangih Efeeloo ◽  
Emeka Nwokeji N.A
Keyword(s):  
Financial Performance ◽  
Consumer Goods ◽  
Intangible Assets ◽  
Critical Role ◽  
Annual Reports ◽  
Optimum Level ◽  
Analytical Technique ◽  
Ex Post ◽  
Ex Post Facto ◽  
Level Of Significance

This study assessed the effect of asset mix on financial performance of selected consumer goods firms in Nigeria. The specific objectives of the study were to determine the effects of tangible non-current assets, current and intangible assets structures and returns on asset. Ex post facto research design was adopted and data obtained from the annual reports of the companies for a seven-year period from 2013 to 2019. Multiple regression analytical technique was employed in analyzing the data. The findings of the study revealed that the independent variables employed in the study explained about 13.7% of the variations in returns on asset. Specifically, both current and intangible assets have positive and significant effect with ROA at 5% level of significance. Noncurrent asset has positive but insignificant effect on ROA. Thus, the assets composition of a firm plays a critical role in the financial performance of that firm, although it explains only about 14% of the performance of the firm. It was therefore recommended that firms should increase their current and intangible assets, but should keep it at an optimum level that will ensure that maturing short-term business obligations are met.

scholarly journals Effect of Equity Financing Options on Financial Performance of Non-Financial Firms Listed at the Nairobi Securities Exchange, Kenya

2018 ◽  
Vol 5 (4) ◽  
pp. 160
Author(s):  
Benter Omollo Achieng ◽  
Willy Muturi ◽  
Joshua Wanjare
Keyword(s):  
Capital Structure ◽  
Corporate Finance ◽  
Financial Performance ◽  
Ordinary Least Squares ◽  
Negative Effects ◽  
Equity Financing ◽  
Financial Firms ◽  
Positive Effects ◽  
Retained Earnings ◽  
Positive Effect

Corporate finance managers worldwide have for a long time consistently sought to maximize shareholders’ wealth and their firm’s market value through their decisions on firm’s capital structure. However, both scholars and practitioners of corporate finance are yet to agree on the optimal mix of equity and debt that maximizes a firm’s financial performance. The purpose of this study was to examine the effects of equity financing options namely common stock (CS), retained earnings (REN) and total equity (TED) as ratios of total assets on the financial performance measured as return on assets (ROA) and return on equity (ROE) of Kenya’s listed firms. Utilizing panel econometric techniques namely pooled ordinary least squares (OLS), fixed effects (FE) and random effects (RE), the study analyzes the effects of equity variables as ratios of total assets on the financial performance of 40 non-financial firms listed at the Nairobi Securities Exchange between 2009 and 2015. The study’s empirical results show that CS ratio significantly and negatively affects ROA while REN ratio has a statistically significant and positive effect on ROA. Overall, TE ratio positively and significantly affects ROA. On the contrary, ROE is not significantly affected by the equity variables in the sample. While the non-significant effects of equity on ROE find support in Modigliani and Miller’s capital structure irrelevance theory, the positive effects of REN ratio and the negative effects of CS ratio on ROA, which are largely supported by the trade-off theory, may explain the pecking order theory’s prioritization of internal capital sources over debt and equity issuances. Thus, corporate finance managers should find a place for internal financing options particularly retained earnings to maximize equity holders’ returns on assets employed. Additionally, corporate finance managers should endeavour to minimize on the use of CS due to its negative effects on shareholder earnings on their assets. Nonetheless, a reasonable balance between CS and REN should be considered since the positive effect between TE and ROA is an appraisal for an optimum mix of equity financing options.

scholarly journals The Role of Financial Performance in Mediating The Effect of Good Corporate Governance on Financial Distress

2019 ◽  
Vol 15 (1) ◽  
pp. 34-47 ◽  
Author(s):  
Ratieh Widhiastuti ◽  
Ahmad Nurkhin ◽  
Nurdian Susilowati
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Distress ◽  
Negative Impact ◽  
Stock Exchange ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Financial Difficulties ◽  
Good Corporate Governance

AbstractThis research aims to study the effect of good corporate governance on financial distress directly and mediated by financial performance. The study population was a manufacturing company listed on the Indonesia Stock Exchange (IDX) in 2016. The study sample was determined using the purposive sampling method, which produced 137 companies that met the requirements. The research data uses secondary data in the form of financial statements and annual reports of manufacturing companies obtained through the Indonesia Stock Exchange website. The analytical tool to test the research hypothesis is Analysis of Moment Structures (AMOS). The results of the study show that there is no direct and indirect impact on corporate governance to financial difficulties; while financial performance has a negative impact on financial difficulties. Keywords: Financial Performance, Good Corporate Governance, Financial DistressPeran Financial Performance dalam Memediasi Pengaruh Good Corporate Governance Terhadap Financial DistressAbstrakTujuan penelitian ini adalah untuk mengetahui pengaruh good corporate governance terhadap financial distress baik secara langsung maupun dengan dimediasi oleh financial performance. Populasi penelitian adalah perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) pada tahun 2016. Sampel penelitian ditentukan dengan menggunakan metode purposive sampling, yang menghasilkan 137 perusahaan yang memenuhi syarat. Data penelitian menggunakan data sekunder berupa laporan keuangan dan annual report perusahaan manufaktur yang diperoleh melalui website Indonesia Stock Exchange. Alat analisis untuk menguji hipotesis penelitian yaitu Analysis of Moment Structures (AMOS). Hasil penelitian menunjukkan good corporate governance tidak berpengaruh baik secara langsung maupun tidak langsung terhadap financial distress; sedangkan financial performance berpengaruh negatif signifikan terhadap financial distress. Kata kunci: Financial Performance, Good Corporate Governance, Financial Distress 

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