This study investigated the effect of capital structure on firm performance using a sample of seven companies listed under the consumer goods sector of the Nigerian Stock Exchange. The study adopted return on assets as proxy for performance (the response variable), while capital structure components such as debt to equity, debt to capital employed and equity to capital employed were used as the explanatory variables. Secondary data were collected from the annual published financial reports of the sampled consumer goods sector companies for the period 2009 to 2018. The study employed descriptive statistics and multiple regression technique based on the E-view 9.0 software as the methods of data analysis. The results revealed that debt to equity has insignificant positive impact on return on assets, debt to capital employed and equity to capital employed had negative but insignificant effect on return on assets. Over all, capital structure has no significant effect (at 5% level) on firm performance in the consumer goods sector. Based on the findings, the study recommended among others that the management of consumer goods sector companies should exercise caution in considering the use of debt finance (following the Pecking order theory) in their capital mix up to the optimal limits, as debt to equity ratio provided insignificant positive effect on performance; and that further studies be conducted on other sectors of the economy to provide more robust generalized inferences.
This paper analyses the structure, conduct, and performance of commercial banks in Ghana. The empirical investigation uses two different measures of concentration to represent market structure and a market share variable to capture the effect of Market conduct on bank performance, and two accounting measures: return data on Return on Assets (ROA), return on equity (ROE) to represent banks’ performance. Annual time series data ROA, ROE and other ratios were collected from nineteen commercial banks over the period 2007 -2012. The results indicated that market concentration and market share significantly determines profitability in Ghana, signifying the strong acceptance of the SCP hypothesis. Consequently, the research suggests the need for improvement in bank capitalization, bank size, service product innovation and effective liquidity management for the Ghanaian banking industry