Capital Structure and Firm Performance Nexus: Nigerian Consumer Goods Sector Analysis (Published)
This study investigated the effect of capital structure on firm performance using a sample of seven companies listed under the consumer goods sector of the Nigerian Stock Exchange. The study adopted return on assets as proxy for performance (the response variable), while capital structure components such as debt to equity, debt to capital employed and equity to capital employed were used as the explanatory variables. Secondary data were collected from the annual published financial reports of the sampled consumer goods sector companies for the period 2009 to 2018. The study employed descriptive statistics and multiple regression technique based on the E-view 9.0 software as the methods of data analysis. The results revealed that debt to equity has insignificant positive impact on return on assets, debt to capital employed and equity to capital employed had negative but insignificant effect on return on assets. Over all, capital structure has no significant effect (at 5% level) on firm performance in the consumer goods sector. Based on the findings, the study recommended among others that the management of consumer goods sector companies should exercise caution in considering the use of debt finance (following the Pecking order theory) in their capital mix up to the optimal limits, as debt to equity ratio provided insignificant positive effect on performance; and that further studies be conducted on other sectors of the economy to provide more robust generalized inferences.
Keywords: Assets, Capital, Debt, Equity, Performance, Returns, Structure, employed
DETERMINANTS OF RISK AND RETURN PERFORMANCE SIGNIFICANCE ON MATURITY BASED SUKUK MARKET STRUCTURE (Published)
This research focuses on determinants of recent return and risk performance in the sukuk market. Therefore, this paper attempted to identify different types of risks embedded in sukuk structure and to determine the impact of different types of risks on return of sukuk analyze the relationship between risk and sukuk returns as objectives. Data were collected on periodic basis for determining the impact on daily from 2005 to 2013. This research study considered sukuk returns as dependent variable and many independent variables such as diverse risks, which are interest rate risk, inflation risk, foreign exchange risk, legal risk, Shari’ah compliance risk, credit risk, default risk, maturity risk, liquidity risk, and reinvestment risk. The data presentation and analysis using line charts and descriptive statistics followed by the correlation analysis, regressions i.e. ordinary least square (OLS) are conducted with F and t statistics.Results of this study reveal that Dow Jones maturity base confirmed that four models explain 70% to 80 % of variation such as DJ M3T sukuk return is 80%, DJ M5T sukuk return is 78%, DJ M7T sukuk return is 75% and DJ M10T sukuk return is 75%.There is relationship between market risk ,credit risk ,operational risk , liquidity risk and Sukuk returns. These results revealed that objectives set in this research study proved the relationship between total return and different type of risks. This research has implications for the managerial and policy making level. Since sukuk markets are becoming famous globally developed countries try to adopt Islamic sukuk for prevailing financial crisis
Keywords: Market, Maturity, Performance, Return, Risk