This study explored the impact of capital structure optimality on performance metrics of ten (10) multinationals from 2010 to 2019. The study made use of Total debt to Equity Ratio (TDER), Total debt to Total Asset Ratio (TDAR), Short-term Debt to Asset Ratio (SDAR), and Long term debt to Total Asset ratio (LDAR) as components of capital structure and while return on equity (ROE) was used to proxy the performance of the sampled companies. Data for the study was derived from the annual reports of the sampled multinationals over the studied period. Using the panel data methodology, the study supports the fixed effect model as suggested by the Hausman test. Result emanating from the fixed effect model established that TDER exerts negative yet significant impact on the ROE of multi-nationals in Nigeria. Meanwhile, both TDAR and SDAR exert positive yet insignificant impact on the ROE of multi-nationals in Nigeria. However, LDAR ratio exerts negative yet insignificant impact on the ROE of multi-nationals in Nigeria. Hence, we conclude that the judicious mix of TDAR and TDER can achieve optimal performance of firms in multinationals in Nigeria. In light of this, the study recommends that the management of multinationals should ensure their capital structure is optimum with a view to avoid being cash strapped and debt ridden.
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