European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

debt capital

Determinants of Capital Structure Decision of Micro, Small and Medium Scale Entreprises (MSMES) in Selected South Western States, Nigeria (Published)

This research investigated the firm characteristics and owner-manager characteristics that affect capital structure decisions of Micro Small and Medium Scale Enterprises (MSMEs) in Nigeria using a sample size of 120, drawn from MSMEs in Ondo and Osun states, combining the simple random sampling technique with the cluster sampling technique. This study employed primary data by administering questionnaires to MSME owners and managers. The descriptive statistics and logistic regression analysis was used to analyse data. The results showed that size of firms using capital investments had a significant positive impact on capital structure decisions, while size of firms using number of employees had a positive but insignificant effect on capital structure decisions. In the same vein, firm age showed an insignificant positive effect on capital structure choices of MSMEs in Nigeria. Owner-Manager gender, age and education revealed an insignificant negative effect on capital structure decisions of MSMEs in Nigeria. Consider. This study therefore recommends that MSMEs should from time to time expand the scope of their activities as they grow in order to easily access external finance when the need arises. In the same vein, external finance such as debt can be explored by both the male and female gender when there is a need for it, after carefully considering the risks and benefits.


Keywords: MSMEs., capital structure decisions, capital structure determinants, debt capital, firm characteristics, owner-manager characteristics

Moderating Role of Board Size on Debt Capital and Firm Performance of Quoted Industrial Goods Companies in Nigeria (Published)

Financing sources of any corporate organization are a serious determinant of its performance because either equity or debt financing has its cost. The interaction between them has to be evaluated periodically. Against this background, this study establishes the Moderating role of board size on debt capital and the firm performance of industrial goods companies in Nigeria. The population of the study comprises the thirteen industrial goods companies quoted on the Nigeria Exchange Group (NGX). The population was wholly sampled for the study. Debt financing represented by debt-to-total asset was the independent variable, while, firm performance) was measured by return on assets (ROA). The panel data were obtained from the financial statements of the companies from 2012-2021. The study adopts a bi-model approach for clarity of presentation and analysis. The analysis was conducted with the aid of the pooled Ordinary Least Square Multiple Regression method and the result from Model I showed that debt capital has a significant negative effect on the firm performance of the sampled companies. The result from Model II indicated that board size has an insignificant positive moderating effect on debt capital and firm performance. The study recommends that the management of industrial goods companies in Nigeria should keep debt capital at its lowest to improve their performance.

Keywords: Board size, Firm Performance, debt capital, moderating variable and return on asset.

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