Main Article Content
Abstract
The study is critically examined the effect of capital structure on the performance of firms in Nigeria. The specific objectives are to; ascertain the effect of capital structure on return of equity of quoted food production firms in Nigeria; evaluate the effect of capital structure on return on assets of quoted food production firms in Nigeria. The research questions and hypotheses are in line with the objectives of the study. Ex post facto research design was adopted for the study. Data were extracted from annual accounts of food production firms quoted on the Nigerian Stock Exchange and the formulated hypotheses were tested using simple regression analysis with aid of SPSS Version 20.0. The Based on analysis, the study revealed that capital structure has positive influence on return on equity of quoted food production firms in Nigeria but not statistically significant. It also revealed that capital structure has positive influence on return on asset of quoted food production firms in Nigeria but not significantly significant. Based on study findings, the study recommended among others that firm management should ensure that the amount of debt finance in the financial mix of the firm should be at the optimal level so as to ensure adequate utilization of the firms’ assets, thereby, enhancing the shareholders fund.