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Complementarity of Equity and Debt Capital on Profitability of Quoted Consumer Goods Firms in Nigeria

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Complementarity of Equity and Debt Capital on Profitability of Quoted Consumer Goods Firms in Nigeria


Chibuike Charles Okudo | Amahalu, Nestor Ndubuisi | Samuel Oshiole



Chibuike Charles Okudo | Amahalu, Nestor Ndubuisi | Samuel Oshiole "Complementarity of Equity and Debt Capital on Profitability of Quoted Consumer Goods Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-2, April 2023, pp.491-501, URL: https://www.ijtsrd.com/papers/ijtsrd55070.pdf

This study ascertained the complementarity of equity and debt capital of quoted consumer goods companies in Nigeria from 2011-2021. Specifically, the study determined the effect of shareholders’ equity and total liabilities on return on assets, return on equity and earnings per share. Purposive sampling technique was employed to select fourteen (14) consumer goods companies from a population of twenty three (23) quoted consumer goods firms in Nigeria. Panel data were used in this study, which were obtained from the annual reports and accounts of sample firms for the periods 2011-2021. Ex-Post Facto research design was employed. Descriptive statistics of the dataset from the sample firms were described using the mean, standard deviation, minimum and maximum values of the data for the study variables. Inferential statistics using Multicollinearity test, Pearson correlation coefficient and Panel least square regression analysis were applied to test the hypotheses of the study. The results showed that shareholders’ equity has a positive and significant effect on ROA, ROE and EPS respectively at 5% level of significance, while total liabilities has a negative and significant effect on ROA, ROE and EPS, however, significant at 5% level of significance. This study recommended amongst others that an appropriate mix of equity and debt capital should be adopted in order to increase the profitability of consumer goods firms.

Shareholders’ Equity, Total Liabilities, Return on Assets, Return on Equity, Earnings Per Share


IJTSRD55070
Volume-7 | Issue-2, April 2023
491-501
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

International Journal of Trend in Scientific Research and Development - IJTSRD having online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International Journal which provides rapid publication of your research articles and aims to promote the theory and practice along with knowledge sharing between researchers, developers, engineers, students, and practitioners working in and around the world in many areas like Sciences, Technology, Innovation, Engineering, Agriculture, Management and many more and it is recommended by all Universities, review articles and short communications in all subjects. IJTSRD running an International Journal who are proving quality publication of peer reviewed and refereed international journals from diverse fields that emphasizes new research, development and their applications. IJTSRD provides an online access to exchange your research work, technical notes & surveying results among professionals throughout the world in e-journals. IJTSRD is a fastest growing and dynamic professional organization. The aim of this organization is to provide access not only to world class research resources, but through its professionals aim to bring in a significant transformation in the real of open access journals and online publishing.

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