DETERMINANTS OF CAPITAL STRUCTURE IN NIGERIA: EVIDENCE FROM BREWERIES INDUSTRY

Abstract

This study examined Nigeria's brewery capital structure from 2019 to 2024. ROI was the dependent variable in this research, with debt and equity capital as independent variables. The study used panel data analysis to estimate. Hausman test showed that the fixed effect model was better for the investigation. The result revealed that debt financing, equity financing and retained earnings in Nigeria has low impact on ROI. Return on investment (ROI) in Nigeria was negatively related with debt financing, equity financing and retained earnings demonstrating that capital structure indices has negative impact on Nigerian brewers' performance. Stockholdings may boost ROI if handled appropriately, therefore organisations should review them. Management of listed firms should consider their whole asset base when choosing a capital structure.