Capital Structure and Corporate Performance in Nigeria Petroleum Industry: Panel Data Analysis
Dare Funso David and Sola Olorunfemi
DOI : 10.3844/jmssp.2010.168.173
Journal of Mathematics and Statistics
Volume 6, Issue 2
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.
© 2010 Dare Funso David and Sola Olorunfemi. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.