The Empirical Trends In The Capital Structure Of Quoted Companies On Nigeria Stock Exchange (a Case Study Of Some Selected Quoted Companies)

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ABSTRACT

The issue of capital structure is being generating controversy among financial manager throughout the world. A lot of theories and suggestions have advanced as to the best way to handle issue, but there seems to be no concessions on the issue. This study and attempt to provide empirical evidence on the trend of capital structure of Nigeria quoted companies. The sole objectives is to examine the extent of the use of debt vis-à-vis equity fund for selected quoted companies likewise, we will look at the relation between a company’s capital structure and its profitability, liquidity as well as investors’ expectations. The five companies selected for examination are all quoted on the Nigeria stock exchange. The data used were collected from various annual financial reports of such companies. The study covers the period 2006-2010 and a method of financial ratio was employed for the analysis. The analysis of the result obtained confirmed that Nigeria quoted companies employ lower level of debt vis-à-vis equity funds. We were also able to conclude that capital structure has a negative influence on company’s profitability and liquidity and has no significant influence on investor’s expectations.

TABLE OF CONTENT

Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content vi

CHAPTER ONE: INTRODUCTION 
1.1 Background to the Study 1
1.2 Objective of the Study 2
1.3 Research Questions 2
1.4 Benefits of the study 3
1.5 Scope and Limitations of the Study 3
1.6 Study Outline 4

CHAPTER TWO: LITERATURE REVIEW 
2.1 Overview of Nigerian Economic and Financial
Environment 6
2.2 Sources of Business Capital 11
2.3 Benefits of Investing in Bonds 26
2.4 Theory of Capital Structure 26
2.5 Consideration in the Determination of
Capital Structure 36
2.6 Empirical Trends in the Structure of Quoted 
Companies of Nigeria Stock Exchange 42
2.7 Capital Structure: Comparative analysis 44
CHAPTER THREE: RESEARCH METHODOLOGY 
3.1 Introduction 52
3.2 Restatement of Research Question 52
3.3 Sources and nature of data 52
3.4 Sample Size 53
3.5 Data Analytical Procedure 53
3.6 Limitations to the Study 54

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction 55
4.2 Presentation of Data 55
4.3 Interpretation of Analysis 64

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 
5.1 Summary and Findings 68
5.2 Conclusion 69
5.3 Recommendations 71
Bibliography 74



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(2016, 08). The Empirical Trends In The Capital Structure Of Quoted Companies On Nigeria Stock Exchange (a Case Study Of Some Selected Quoted Companies).. ProjectStoc.com. Retrieved 08, 2016, from https://projectstoc.com/read/7887/the-empirical-trends-in-the-capital-structure-of-quoted-companies-on-nigeria-stock-exchange-a-case-study-of-some-selected-quoted-companies-4724
"The Empirical Trends In The Capital Structure Of Quoted Companies On Nigeria Stock Exchange (a Case Study Of Some Selected Quoted Companies)." ProjectStoc.com. 08 2016. 2016. 08 2016 <https://projectstoc.com/read/7887/the-empirical-trends-in-the-capital-structure-of-quoted-companies-on-nigeria-stock-exchange-a-case-study-of-some-selected-quoted-companies-4724>.
"The Empirical Trends In The Capital Structure Of Quoted Companies On Nigeria Stock Exchange (a Case Study Of Some Selected Quoted Companies).." ProjectStoc.com. ProjectStoc.com, 08 2016. Web. 08 2016. <https://projectstoc.com/read/7887/the-empirical-trends-in-the-capital-structure-of-quoted-companies-on-nigeria-stock-exchange-a-case-study-of-some-selected-quoted-companies-4724>.
"The Empirical Trends In The Capital Structure Of Quoted Companies On Nigeria Stock Exchange (a Case Study Of Some Selected Quoted Companies).." ProjectStoc.com. 08, 2016. Accessed 08, 2016. https://projectstoc.com/read/7887/the-empirical-trends-in-the-capital-structure-of-quoted-companies-on-nigeria-stock-exchange-a-case-study-of-some-selected-quoted-companies-4724.

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