ABSTRACT

 Capital structure discusses a mix of debt and equity in financing its operation using the debt and equity factor. For more than two decades now, Nigerian Business firms have experience poor investment performance. The main objective of the study is to ascertain the effect of capital structure on the growth of corporate performance. Chapter two deals with the literature review of this research topic. Data were gathered from secondary sources, the data was tabulated and statistically analysed using the ordinary least square (OLS) analysed technique. Analysis of data shows the indices of capital structure (i.e Debt, Equity) and corporate performance (profitability), from the year 2005 to 2014 for Bank Plc. From the table the R-Square value is 0.888519, meaning that about 8990 total variation in profitable is accounted for debt equity financing and dept equity ratio under taken by the turn. While less than 11% is accounted for the stochastic error term or variable exculpated from the model. Based on the finding from the study, the following conclusion was drawn debt/equity significantly influences corporate performance in company's it could be concluded from the above findings that the performance of the organization is significantly related to capital structure ratios. Based on the findings of the study, it is recommended that: In improving firms' performance, share of equity financing in the capital structure should be increased, To avoid conflict of managers with shareholders interest, manager should go for long run value maximization of the firm which satisfies both managers and shareholders interest.