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The International Journal of Applied Economics and Finance
  Year: 2007 | Volume: 1 | Issue: 1 | Page No.: 16-28
DOI: 10.3923/ijaef.2007.16.28
An Empirical Analysis of the Capital Structure of Selected Quoted Companies in Nigeria
Salawu Rafiu Oyesola

Abstract:
This study examines an empirical analysis of the capital structure of selected quoted companies in Nigeria between 1990 and 2004. The analyses are performed using panel data pertaining to 50 non-financial firms. Static tests are conducted and panel data specifications are used. Considering the results for all the firms, leverage is negatively correlated with profitability. Tangibility is positively correlated with total debts and long-term debts, but negatively related to short-term debts. In addition, collateral appeared to influence all bank borrowing in Nigeria, whether short-term or long-term. Growth opportunity is positively related to both total debts and short-term debts. The size of the companies is positively correlated with total debts and short-term debts, suggesting that large firms can better support higher debt ratios than small firms. The empirical result shows that debt financing for listed companies in Nigeria corresponds mainly to a short-term debts nature, with a mean value of 60%. Nigeria firms should adopt appropriate steps to lengthen the maturity structure of corporate debt. In addition, government should endeavour to develop capital market to be able to absorb the increase in demand for funds.
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How to cite this article:

Salawu Rafiu Oyesola , 2007. An Empirical Analysis of the Capital Structure of Selected Quoted Companies in Nigeria. The International Journal of Applied Economics and Finance, 1: 16-28.

DOI: 10.3923/ijaef.2007.16.28

URL: http://scialert.net/abstract/?doi=ijaef.2007.16.28

COMMENTS
23 October, 2010
Ibrahim:
Hi there, can you please forward me the full details of this article with the calculation and how was the caculation taken in place. Thanks in advance
 
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