INFLUENCE OF FIRM SPECIFIC AND CORPORATE GOVERNANCEFACTORSON CAPITAL STRUCTURE OF PUBLICLY LISTED NON-FINANCIALFIRMSINNIGERIA

Abstract

The primary aim of this research is to investigate the impact of firm-specific and corporategovernance variables on the capital structure of non-financial firms that are publiclylistedinNigeria. The study's population consists of 123 non-financial firms listed on the NigerianExchange Group between 2006 and 2020. A sample of 58 firms was selected usinganinclusion and exclusion approach. The data was analysed using the generalized methodofmoments technique. The results indicate that past values of total debt to assets exhibit anoteworthy and favourable impact on present values of total debt to assets. Conversely, thecurrent ratio, return on assets, non-current assets, board ownership, and board independencedisplay an unfavourable and noteworthy influence on total debt to assets. Return onequityand debt-tax-shield, on the other hand, demonstrate an unfavourable and insignificant impact
on total debt to assets. Finally, tangibility and block-ownership manifest a favourableandnoteworthy influence on total debt to assets. Conversely, the variables pertaining tofirm-specific and corporate governance exhibit noteworthy impact on the ratio of long-termdebt toequity. The study recommends that firms should consider past level of debts whensettingcurrent debt levels.