Effect of Capital Structure on The Financial Performance of Nigerian Listed Brewery Industries.

This study examined the effect of capital structure on the performance of brewery companies listed on the Nigerian Exchange Group. The study adopted an ex-post facto research design. The study used a sample of four listed brewery companies on the Nigerian Exchange Group. The secondary source of data was collated from the annual reports of the companies for the period 2021 to 2015. Data were analysed using multiple regression analysis. Results showed that there is a negative and significant relationship between the total debt ratio and both return on assets and return on equity of brewery companies listed on the Nigeria Exchange Group, while the total debt to assets ratio has a positive effect on Tobin’s Q. The results also indicated that the F-statistics are 10.4941, 21.2366, and 5.3740, with probabilities of 0.000, 0.000, and 0.0041, indicating that the combined effect of the explained variables on firm performance, represented by return on assets, equity, and Tobin’s Q, is statistically significant. Therefore, the study recommended that listed companies should watch their continued use of the debt-to-assets ratio in their operations carefully to achieve better performance.

Capital Structure, Firm’s Performance, Return on Assets, Return on Equity, Firms’ Size.

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