{'fraction_non_alphanumeric': 0.015741507870753936, 'fraction_numerical': 0.008285004142502071, 'mean_word_length': 5.425531914893617, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Capital Structure and Financial Performance of Nigerian Listed Firms: An Agency Cost Theory Perspective

The choice of how business activities are financed is vital to every firm. This is because optimal or balanced capital mix between debt and equity impacts on the firm’s value as well as its market valuation. However, optimal capital mix has over the years attracted attention due to its aforementioned impacts with previous studies finding mixed results. The study examined the effect of capital structure on financial performance of 40 selected firms listed on the Nigeria Stock Exchange. Secondary data were obtained from annual reports and accounts of the sample firms for a ten year period (2007-2016), and were analysed using descriptive and inferential statistics; panel least regression technique. Hausman test was also conducted which favoured fixed-effect model. The study found a statistically significant positive relationship between proxies of financial performance (ROE and ROA) and capital structure. The study recommended that top management of listed firms in Nigeria should judiciously mix capital structure components to enhance the productivity and profitability of their companies.