Perceived Relationship between Corporate Capital Structure and Firm Value in Nigeria
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Date
2011
Authors
Adeyemi, S.B
Oboh, C.S
Journal Title
Journal ISSN
Volume Title
Publisher
Centre for Promoting Ideas, USA
Abstract
This study examined the empirical effects of corporate capital structure (financial leverage) on the market value of a selection of firms listed on the Nigerian Stock Exchange. Both primary and secondary data were obtained for analysis employing both descriptive and inferential statistics for analysis. A sample size of 150 respondents and 90 firms were selected for both primary data and secondary data respectively. Descriptive statistics was used to analyse the primary data, while Chi-Square was used to draw inference of perceived relationship between capital structure and firm value. The results of the study suggested that a positively significant relationship exists between a firm’s choice of capital structure and its market value in Nigeria. The study suggested that listed firms in Nigeria should strategically plan and manage their capital structure in order to maximize their market values
Description
Staff Publications
Keywords
Capital structure , Market value , Equity , Debt
Citation
Adeyemi, S.B and Oboh, C.S (2011) Perceived Relationship between Corporate Capital Structure and Firm Value in Nigeria. International Journal of Business and Social Science Vol. 2(19)