Research Article

Impact of Corporate Governance and Firm Specific factors on Capital Structure of Publicly Listed Non-Financial Firms in Nigeria

Shonubi Taiwo Anthony1*, Olalekan Obademi2, Peter Amah2, Shiro Abass2
1 Department of Finance, University of Lagos, Nigeria
2 Department of Finance, University of Lagos, Akoka,
* Corresponding author: shonubitaiwoanthony@femsbukjournals.org.ng
Published: Sep, 2023
DOI: 10.67894/bbr.2023.fexjthws
Pages: 259-283
Views: 9
Downloads: 4

Abstract

This study examined the impact of corporate governance and firm-specific variables on the capital structure of non-financial companies listed on the Nigerian Stock Exchange from 2006 to 2020. The study utilized secondary data obtained from a sample of 58 publicly listed companies. Generalized method of moments technique was used to analyze the data. The findings revealed that liquidity, return on equity, non-current asset, and debt tax shield were found to have positive and significant influence on long term debt to asset. Tangibility, returns on asset, board and block ownership were found to have negative and significant influence on long term debt to assets. In addition, all firm specific and corporate governance factors have significant influence on long term debt to equity. These findings are consistent with prior studies and provide important insights for firms, investors and policy makers desiring to know much about optimal capital structure decisions. Thus, the study recommended that Nigerian companies should monitor their liquidity levels, and strive for profitability to reduce debt burdens in their financing decisions. 

Keywords

Capital structure corporate governance factors Firm specific factor Publicly quoted Non-financial firms.

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How to Cite

Anthony, S. T., Obademi, O., Amah, P., & Abass, S. (2023). Impact of Corporate Governance and Firm Specific factors on Capital Structure of Publicly Listed Non-Financial Firms in Nigeria. Bayero Business Review, 7(1), 259-283. https://doi.org/10.67894/bbr.2023.fexjthws

S. T. Anthony, O. Obademi, P. Amah, and S. Abass, "Impact of Corporate Governance and Firm Specific factors on Capital Structure of Publicly Listed Non-Financial Firms in Nigeria," Bayero Business Review, vol. 7, no. 1, pp. 259-283, September 2023. doi: 10.67894/bbr.2023.fexjthws

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