Capital structure and return on capital employed of construction companies in Nigeria Online publication date: Wed, 11-Apr-2018
by Sirajo Murtala; Mohammed Ibrahim; Sagir Lawal; Buhari Baba Abdullahi
African J. of Accounting, Auditing and Finance (AJAAF), Vol. 6, No. 1, 2018
Abstract: This study examined the impact of capital structure on return on capital employed of construction firms in Nigeria. The data for the study was obtained from the annual report and accounts of the sampled firms. The study employed panel data analysis and pooled regression, fixed-effect and random-effect estimation techniques for the analysis and Stata 12.0 was used. The study concluded that capital structure has a negative impact on return on capital employed of the sampled construction companies in Nigeria. The study recommends that the managers of the construction companies should be careful while using debt as a source of finance; they should try to finance their activities with retained earnings and use debt as a last option.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the African J. of Accounting, Auditing and Finance (AJAAF):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com