Capital Structure and Firms’ Performance in Nigeria (Published)
This study examined the effects of capital structure on the performance of selected quoted manufacturing firms in Nigeria from 2015 to 2024. Four models were specified to capture the influence of capital structure on the selected firms’ performance. Capital structure was proxied by equity (EQF) and total debt of firms (TDF) while firms’ performance, by returns on assets (ROA), earnings per share (EPS) and dividend per share (DPS). Data were sourced from the annual financial reports and balance sheets of the selected firms in various years. The Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests were conducted to test for the stationarity of the series, while the Panel Ordinary Least Squares (POLS) estimation technique was adopted to test for the long run relationship of the series. The fixed and random effects estimation was also conducted while the Hausman test allowed us to select which model was more efficient for the analysis. The findings revealed that both equity and debt were positive but only debt was significant in explaining changes in returns on assets. Equity was negative while debt was positive but both were significant in explaining changes in earnings per share of the selected firms. Equity was negative while debt was positive but both were not statistically significant in explaining changes in dividend per share. The study recommended that an optimal mix of equity and debt financing will be appropriate for optimal utilization of assets and debt to leverage returns. Firms should embark on more holistic and strategic policies geared towards increased profitability and decreased number of outstanding shares at the same time. Equity and debt can be leverage to create value for shareholders through increased financial leveraging, tax benefits, cost of debts and equity financing.
Keywords: Capital Structure, Earnings per share, Returns on Assets, dividend per share, firms’ performance, market price per share, total debt of firms
Does Corporate Social Responsibility Influence Firms Performance in Nigeria? (Published)
The social responsibility disclosure has become a widely and persistent debated topic of discussion in the Nigerian academic community given the effects that business environment activities have on employees, communities, clients, society, business associates, shareholders, and environment. The global economic challenges which have hinder effective operation in the deposit money banks to operate thereby reduce their performance. It is against this backdrop that this study examined the effect of social responsibility disclosure and firm performance in Nigeria. Social responsibility disclosure as the explanatory variables was proxied with environmental disclosure, governance disclosure, human resources disclosure and community disclosure while the response variable is the firm performance. The sampling technique were adopted by the reviewed studies. A mixed approached of data were used (primary and secondary sources of data were extraction from both questionnaires and the annual report and accounts from various studies. Theory and hypotheses were adopted and multiple regressions were used to analysis their data. Based on the reviewed studies, it was established that environmental disclosure and human resources disclosure are insignificant effect on the firm performance, while the governance disclosure has a significant effect on firm performance, while the community disclosure is positive and insignificant influencing firm performance. It is recommended among others that companies should engage the speciality on environment reporting to reduce the performance on the firms. Also, firms should improve by participating in community services for better disclosure the community activities and maintain the current governance disclosure level because has been found empirically to increase the firm performance.
Citation: James George Apochi and Samuel Eniola Agbi (2022) Does Corporate Social Responsibility Influence Firms Performance in Nigeria? European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 9, pp.1-12
Keywords: Environmental, Governance, Human Resources, community disclosure, firms’ performance