Abstract:

This research work was aimed at examining the effect of Capital Structure on financial performance of Nigerian Quoted Companies. Data for the period of five years (2011-2015), sourced from the annual reports of the quoted companies was used in carrying out the analysis. The variable used were capital structure is substitute by debt ratio (DR), assets turnover (TURN), assets tangibility (TANG), and financial performance (profitability) is substitute by return on equity (ROE).STATA software was engaged in performing the correlation and regression analysis. The study detected that from the regression analysis result based on the firms used. The coefficient determining factor R2 value is 0.9225 which makes it insignificant. It means there is no significant relationship between capital structure and the financial performance of firms. Considering the empirical reviews, it has been observed that no work has been done on the effect of capital structure on financial performance in Nigerian Quoted companies using companies specialized in various activities. This is the gap this work has come to fill.