ABSTRACT

 The study investigated on Capital structure and financial performance of listed manufacturingfirms in Nigeria, from 2009-2018. To achieve this objective, the study specifically investigated the relationship between Debtfinancing and Return on Asset (ROA) ofmanufacturingfirms in Nigeria, the relationship between Equityfinancing and Return on Asset (ROA) of manufacturing firms in Nigeria, the relationship between Retained Earnings and Return on Asset (ROA) of manufacturing firms in Nigeria. The study restricted its scope to the period 2009-2018 and data usedfor the study was adoptedfrom theAuditedAnnual report ofthe 5 manufacturingfirms under study. The multiple regression method was employed as the analytical tool. Findings show that capital structure as the independent variable with proxies, such as debt financing, equity financing and retained earnings. It was discovered that debt financing has a negative and significant effect on Return on asset ofmanufacturing firms in Nigeria, Equityfinancing has apositive and insignificant effect on Return on asset ofmanufacturingfirms in Nigeria, while Retained earnings has a positive and significant effect on Return on asset ofmanufacturing firms in Nigeria. The study recommends that the management of corporate entities should always consider the effect the prevalent capitalstructure is having on theirfirm so as to decide on whether to sustain it or reduce the gearing ratio. The level offirms’ gearing should always be monitored by the directors ofbanks so as to determine the total impact ofsuch debt capital on the results ofsuchfirms and to make good decisions on the optimal capital structure that willpromote the cause ofthe organizations