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
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