Research Article

Effects of Capital Structure and Macroeconomic Uncertainty on Financial Performance of Manufacturing Firms in Nigeria: Evidence from Unilever Nigeria PLC

Fauziyya Sanusi1*, Zubairu Ahmad2
1 Department of Business Administration, Faculty of Management Sciences, Federal University Birnin kebbi, Kebbi State
2 Department of Business Administration, College of Social and Management Sciences, Al-Qalam University, Katsina State
* Corresponding author: fauziyyasanusi8@gmail.com
Published: Jun, 2025
DOI: 10.67894/bjf.2025.62h62rex
Pages: 97-110
Views: 15
Downloads: 4

Abstract

This study examined the effect of capital structure, macroeconomic uncertainty and financial performance of firms in Nigeria, with specific reference to Unilever Nigeria PLC Both economic theory and historical experience support the importance of finding ways of achieving good financial performance for the long-term prosperity and survival of individual firms. Data was obtained from annual financial report of the sample firm for the period of 23years (2000-2023). Autoregressive Distribution lag (ARDL) was used as a technique for data analysis and the finding of the study revealed that capital structure has positive and significant effect on firm financial performance. However, inflation rate, exchange rate and interest rate reported negative and significant effect on the financial performance of the sample firm. The study therefore recommends among others that the management of Unilever Nigeria Plc should strategize in increasing their capital structure. In addition, government in collaboration with relevant stakeholders should put measures that ensure stability in macroeconomic environment. 

Keywords

capital structure financial performance macroeconomic factors manufacturing firms

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How to Cite

Sanusi, F., & Ahmad, Z. (2025). Effects of Capital Structure and Macroeconomic Uncertainty on Financial Performance of Manufacturing Firms in Nigeria: Evidence from Unilever Nigeria PLC. Bayero University Journal of Finance, 2(1), 97-110. https://doi.org/10.67894/bjf.2025.62h62rex

F. Sanusi, and Z. Ahmad, "Effects of Capital Structure and Macroeconomic Uncertainty on Financial Performance of Manufacturing Firms in Nigeria: Evidence from Unilever Nigeria PLC," Bayero University Journal of Finance, vol. 2, no. 1, pp. 97-110, June 2025. doi: 10.67894/bjf.2025.62h62rex

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