Impact of Capital Structure and Financial Performance of Real Estates Companies in Nigeria

Abstract

This study examined the impact of capital structure on the financial performance of listed construction and real estate companies in Nigeria from 2015-2019. The study made use of ex-post factor research design which involved gathering panel dataset from published annual reports and accounts of the sampled companies. Purposive/judgemental sampling technique was used to select five (5 listed construction and real estate companies as at December 2019. Descriptive statistics, correlation and regression analysis were used to evaluate the data. The findings revealed that, the capital structure had a negative and insignificant effect on the financial performance of construction and real estate firms in Nigeria for the period under study. Therefore, it was recommended that, management of construction and real estate companies in Nigeria should exercise caution while choosing the amount of debt to be use in their capital structure as it affect their performance negatively.