Research Article Open Access

Capital Structure and Corporate Performance in Nigeria Petroleum Industry: Panel Data Analysis

Dare Funso David and Sola Olorunfemi

Abstract

Problem statement: The actual impact of capital structure on corporate performance in Nigeria has been a major problem among researchers that has not been resolved. Approach: The study looks at the impact of capital structure on corporate performance in the Nigerian Petroleum Industry. Results: The study employed panel data analysis by using Fixed-effect estimation, Random-effect estimation and Maximum likelihood estimation. It was found out that there was positive relationship between earnings per share and leverage ratio on one hand and positive relationship between dividend per share and leverage ratio on the other hand. Conclusion/Recommendations: It is therefore recommended that the management of the industry should do more to improve on its leverage ratio.

Journal of Mathematics and Statistics
Volume 6 No. 2, 2010, 168-173

DOI: https://doi.org/10.3844/jmssp.2010.168.173

Submitted On: 28 May 2008 Published On: 30 June 2010

How to Cite: David, D. F. & Olorunfemi, S. (2010). Capital Structure and Corporate Performance in Nigeria Petroleum Industry: Panel Data Analysis. Journal of Mathematics and Statistics, 6(2), 168-173. https://doi.org/10.3844/jmssp.2010.168.173

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Keywords

  • Leverage ratio
  • dividend
  • earnings per share
  • fixed effect and random effect