ABDULLAHI, Sadiq Rabiu
Department Of Accounting, Faculty of Management Sciences
Bayero University, Kano-Nigeria
srabdullahi.acc@buk.edu.ng
KWARU, Salma Mukhtar
Department Of Accounting, Faculty of Management Sciences
Bayero University, Kano-Nigeria
salmatkwaru0973@gmail.com
KARIM, Dele Ikese
Department of Accounting, ABU Business School
Ahmadu Bello University, Zaria-Nigeria
karimdele5232@gmail.com
ABSTRACT
This study evaluated effect of capital structure on financial performance of listed consumer goods
companies in Nigeria within the period of 2017-2021. The population of the study comprised all
consumer goods firms listed on the Nigerian Exchange Group (NGX) from 2017-2021. The study used
secondary data extracted from the annual reports of the various firms surveyed in the study. The
Ordinary Least Square (OLS) regression technique was used to analyze the data. The study found that
LTDTA and STDTA have positive and negative significant effect on financial performance of
consumer goods firms in Nigeria respectively. Based on the findings, the study recommends that listed
consumer goods firms should increase their use of LTDTA as this will lead to increase in their level of
performance. The firms should also employ the use of a reasonable level of short term debt in their
capital structure to the level that will not affect their performance negatively.
Keywords: Capital structure, consumer goods firms, financial performance, return-on-asset