Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
Nexus Between Capital Structure and Financial Performance of Listed Manufacturing Firms in Nigeria
PhD Olateju Dolapo Aregbesola, Williams Daniel Falope, PhD Sunday O Omojola, PhD Olatunde Wright, Peace Ebunoluwa Kolawole
15 December 2025 · Vol. 1, Issue 6, pp. 140-147
DOI: 10.65150/EP-jefrr/V1E6/2025-03
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What is this article about?
The manufacturing sector in Nigeria faces significant challenges, including inadequate financing, high debt levels, and poor financial performance, which hinder its potential for economic growth. This study investigates the relationship between capital structure and financial performance of listed manufacturing firms in Nigeria, focusing on the impact of debt and equity financing.
Article at a glance
- Published
- 15 December 2025
- Volume / issue / pages
- Vol. 1, Issue 6, pp. 140-147
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
The manufacturing sector in Nigeria faces significant challenges, including inadequate financing, high debt levels, and poor financial performance, which hinder its potential for economic growth. This study investigates the relationship between capital structure and financial performance of listed manufacturing firms in Nigeria, focusing on the impact of debt and equity financing. The study used regression analysis, correlation analysis, and descriptive statistics to examine the financial statements of ten chosen enterprises over ten years (2013– 2022) using secondary data from the Nigerian Exchange Group. The findings indicate that while total debt to total assets and long-term debt to total assets have a favorable influence on financial performance, total debt to total equity and short- term debt to total assets have a negative effect. According to the study's findings, improving capital structure management is essential for improving the financial performance of Nigerian manufacturing companies. Maintaining a balanced debt-to-equity ratio, giving equity financing first priority, leveraging total debt to assets, reducing short-term debt, and skillfully managing long-term debt are some of the recommendations. These findings contribute to a better understanding of the impact capital structure plays in financial performance and are of great use to Nigerian manufacturing companies, policymakers, and regulators.
Keywords: Capital Structure, Financial Performance, Listed Nigerian Manufacturing Companies.
Cite this article
PhD Olateju Dolapo Aregbesola, Williams Daniel Falope, PhD Sunday O Omojola, PhD Olatunde Wright, & Peace Ebunoluwa Kolawole (2025). Nexus Between Capital Structure and Financial Performance of Listed Manufacturing Firms in Nigeria. Journal of Economic, Finance Research and Review, 1(6), 140-147. https://doi.org/10.65150/EP-jefrr/V1E6/2025-03
@article{PhD2025,
title = {Nexus Between Capital Structure and Financial Performance of Listed Manufacturing Firms in Nigeria},
author = {PhD Olateju Dolapo Aregbesola and Williams Daniel Falope and PhD Sunday O Omojola and PhD Olatunde Wright and Peace Ebunoluwa Kolawole},
journal = {Journal of Economic, Finance Research and Review},
year = {2025},
volume = {1},
number = {6},
pages = {140-147},
doi = {10.65150/EP-jefrr/V1E6/2025-03},
url = {https://doi.org/10.65150/EP-jefrr/V1E6/2025-03}
}Questions about this article
Who wrote this article?
PhD Olateju Dolapo Aregbesola, Williams Daniel Falope, PhD Sunday O Omojola, PhD Olatunde Wright, Peace Ebunoluwa Kolawole.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 1, Issue 6, pages 140-147, published by EP Journals Group on 15 December 2025.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V1E6/2025-03 (https://doi.org/10.65150/EP-jefrr/V1E6/2025-03).
How do I cite this article?
APA: PhD Olateju Dolapo Aregbesola, Williams Daniel Falope, PhD Sunday O Omojola, PhD Olatunde Wright, & Peace Ebunoluwa Kolawole (2025). Nexus Between Capital Structure and Financial Performance of Listed Manufacturing Firms in Nigeria. Journal of Economic, Finance Research and Review, 1(6), 140-147. https://doi.org/10.65150/EP-jefrr/V1E6/2025-03
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