THE EFFECT OF CAPITAL STRUCTURE ON THE PERFORMANCE OF QUOTED INSURANCE COMPANIES IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
The study examined the impact of capital structure on the profitability of selected quoted insurance companies in Nigeria between 2011 and 2016. The data were obtained from the published financial reports of selected firms. The panel data analysis was employed in the study.
The findings showed that: Total debt ratio (β= 0.07; p>0.05) and debt-to-equity ratio (β= 0.01; p>0.05) had insignificant positive impact on return on asset of selected quoted insurance firms in Nigeria; The combined effect of total debt ratio and debt-to-equity ratio is statistically insignificant on return on asset of selected quoted insurance firms in Nigeria (F=2.65; p>0.05); Total debt ratio (β= 0.14; p>0.05) and debt-to-equity ratio (β= 0.08; p>0.05) had insignificant positive impact on return on equity of selected quoted insurance firms in Nigeria; The combined effect of total debt ratio and debt-to-equity ratio is statistically insignificant on return on equity of selected quoted insurance firms in Nigeria (F= 1.95; p>0.05); Total debt ratio (β=0.08; p>0.05) had insignificant positive impact on net profit margin while debt to equity ratio (β=0.04; p<0.05) had significant positive impact on the net profit margin of selected quoted insurance firms in Nigeria;The combined effect of total debt ratio and debt-to-equity ratio is statistically insignificant on net profit margin of selected quoted insurance firms in Nigeria (F= 3.55; p<0.05).
The study concludes that capital structure in the form of debt financing and equity financing contributes to the profitability of selected quoted insurance firms in Nigeria, but its influence on profitability is negligible.
The study suggest that; Insurance companies should introduce more debt, especially long-term debt, into their capital structure mix as this will have an automatic effect of reducing the overall cost of capital as a result of its tax advantage that accrue to the organization when this decision is taken, and this often could lead to enhanced profitability of the organizations.
Related Project Materials
TRADITIONAL INSTITUTIONS IN OMU-ARAN DUING THE COLONIAL ERA
-
-
INTRODUCTION:
-
Omu-Aran is the mo...
EXAMINING THE ROLES OF NIGERIA MEDIA DURING THE ENDBADGOVERNANCE PROTEST IN NIGERIA (A CASE STUDY OF JOURNALISTS)
EXAMINING THE ROLES OF NIGERIA MEDIA DURING THE ENDBADGOVERNANCE PROTEST IN NIGERIA (A CASE STUDY OF JOURNALISTS)...
THE EFFECTS OF GLOBAL FINANCIAL CRISIS ON JOB INSECURITY IN NIGERIA
ABSTRACT
The study examined the effects of global financial crisis on job insecurity in Nigeria. The other objectives se...
AN EVALUATION OF HOME MOVIES AND ITS INFLUENCE ON THE DRESSING PATTERNS OF STUDENTS OF TERTIARY INSTITUTIONS IN NIGERIA
Background of study
Home movies are valued as a means of mass communication all over the world....
A CRITICAL APPRAISAL OF ENVIRONMENTAL ACCOUNTING PRACTICES AND REGULATIONS IN NIGERIA ECONOMY
ABSTRACT
The study is an investigation into the development of environmental accounting and disclosure practices of manu...
SPELLING ERRORS AMONG NIGERIA SECONDARY SCHOOL STUDENTS EFFECT ON THEIR PERFORMANCE AS POSSIBLE REMEDIES
Abstract
According to spelling experts, it is very important that the learners of a secondary language should be equippe...
IMPACT OF BANK CHARGES ON CUSTOMER SAVING HABIT A CASE STUDY OF UNION BANK PLC
ABSTRACT
This research work assess the impact of bank charges on customer saving habit a case study of...
EXPLORING THE ROLE OF EARLY CHILDHOOD EDUCATION IN PREVENTING JUVENILE DELINQUENCY
ABSTRACT: This study Explored the Role of Early Childhood Education in Preventing Juvenile Delinquency. The...
THE INFLUENCE OF EMPLOYEE ENGAGEMENT ON BUSINESS PERFORMANCE
This research examines the influence of employee engagement on business performance. Objectives are: (1) to assess the impact of engagement initiat...
FARM POWER SOURCES AND UTILIZATION IN ENUGU STATE
BACKGROUND OF STUDY
Power is required to develop and execute the activities involved in agricultural pr...
