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Capital Structure and Financial Performance of Quoted Telecommunication Companies in Nigeria

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Abstract

Capital structure is a mixture of the financing options a company uses to finance its investments. However, deciding on an optimal capital mix has been a huge task for most telecommunication companies. The main objective of this study is to examined the effect of capital structure on performance of the quoted telecommunication companies in Nigeria. The study used an ex-post facto research design. The study population consisted of 9 quoted telecommunication companies on Nigeria Stock exchange. The purposive sampling technique was adopted to select a sample of seven (7) telecommunication firms for the period of ten years (2012-2021). Data for this study were extracted from the published annual reports and accounts of the sampled companies and validated by the statutory auditors. Data were analyzed using descriptive and inferential statistics. The study found that short term debt, long term debt, equity and total debt had joint and significant effect on profit before tax, return on asset, return on equity and return on capital employed of quoted telecommunication companies in Nigeria. (PBT – Adj. R2 =0.8034, Wald test = 71.51 p

Suggested Citation

  • Joshua Adewale, ADEJUWON & Abisola Mutiat, LASISI & Adefisayo Oluwakemi, ADEJUWON, 2023. "Capital Structure and Financial Performance of Quoted Telecommunication Companies in Nigeria," Multidisciplinary Journal of Social Sciences, Association of Forensic Accounting Researchers (AFAR), vol. 3(1), pages 152-180, June.
    • Handle: RePEc:ris:amjoss:0008
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