DETERMINANTS OF CAPITAL STRUCTURE ON THE DEBT OF CONSUMER GOODS MANUFACTURING COMPANIES IN NIGERIA.
Keywords:
Capital structure, liquidity, debt, consumer goods, Nigeria.Abstract
The study examined the determinants of capital structure and debt of consumer goods
manufacturing companies in Nigeria. Ex Post facto research design was adopted for the
study. A sample size of eighteen (18) quoted consumer goods manufacturing companies
were selected from a population of 20 companies. Data were extracted from the annual
reports and accounts of the sample’s companies from 2011 to 2022. Regression analysis
was employed to test the hypotheses via E-view 9.0. Based on the analysis of data, the study
found that liquidity has negative significant on debt of consumer goods manufacturing
companies in Nigeria, whereas age of company has a positive insignificant effect on debt of
consumer goods manufacturing companies in Nigeria. The study recommended among
others that Management should maintain an optimal balance between current assets and
current liabilities. If the liquidity is too high (current assets is much higher than current
liabilities).
