ABSTRACT
This study analysed the capital
structure and performance differentials in selected livestock investments in
Abia State, Nigeria. The selected livestock enterprises for this study were the
poultry and piggery enterprises. A multi-stage random sampling technique was
used in choosing the sample. Primary data collected from 83 livestock
enterprises comprising of 50 poultry enterprises and 33 piggery enterprises
were used for the study. Data collected were analyzed using some statistical
and econometric tools like frequencies, percentages, averages, independent
samples z-test, Maximum Likelihood Stochastic (MLS) regression, multinomial
logistic regression technique and multiple regression technique. The findings
showed that the mean age of the poultry and piggery enterprises operating in
Abia state was 11.53 years and 9.67 years respectively. The findings also
showed that 45.3% and 65.8% of the poultry and piggery enterprises respectively
are located in the semi-urban areas of the state. The mean number of birds and
pigs existed in the poultry and piggery enterprises in the study area were 1153
birds and 52 pigs per farm. Poultry and piggery enterprises operating in Abia
state had a mean total current asset of N3,730,696.89 and N4,180,140.09
respectively while their mean total liabilities were Nl,213,357.27 and
Nl,522,751.85 respectively. The composition of the capital structure showed
that 70.0% and 66.2% of the poultry and piggery enterprises in Abia state are
operated through a combination of equity and debt capital. The Mean income per
poultry enterprise per annum was Nl,512,477.00 and the Mean income per piggery
enterprise per annum was N920,455.00. Rate of return to investment per poultry
enterprise per annum was 94.81% while for piggery enterprise it was 37.19%.
Comparatively, in terms of profitability analysis, poultry enterprise generates
higher profit margins in Abia state than piggery enterprise. Poultry and
piggery enterprise in Abia state are liquid, solvent and not highly leveraged.
Expected total expenditure requirement of the business, profitability of the
enterprise, size of the enterprise, growth of enterprise, business environment,
liquidity, the total assets’ turnover, owner’s collateral and age of the
enterprise significantly determined the capital structure of the poultry
enterprise in Abia state whereas, expected total expenditure requirement of the
business, profitability of the enterprise, size of the enterprise, growth of
enterprise, liquidity, the total assets’ turnover and age of the enterprise
significantly determined the capital structure of the piggery enterprise in
Abia state. Size of the enterprise, outstanding debts of the enterprise,
business stage, location of the enterprise, scale of operation, amount of
savings, access to loan, significantly determined the level of investment in
the poultry enterprise in Abia state while size of the enterprise, outstanding
debts of the enterprise, business stage, location of the enterprise, scale of
operation, amount of savings, access to loan significantly determined the level
of investment in the piggery enterprise in Abia state. Credit receivables,
amount of savings, cash at hand, trade credits, short-term debt capital and
credit payable significantly influenced the performance of poultry enterprise
in Abia State, whereas, credit receivables, amount of savings, cash in hand,
short-term debt capital, trade credits, and credit payable significantly
influenced the performance of piggery enterprise in Abia State. The study
recommends that both government and other investors in agriculture should
invest in large scale poultry and piggery enterprises in the state which are
profitable so as to provide employment opportunity to the masses, make chicken
AMARACHI, A (2023). Capital Structure And Performance Differentials In Selected Livestock (Poultry And Piggery) Investments In Abia State, Nigeria:- Chima, Amarachi A.. Mouau.afribary.org: Retrieved Nov 23, 2024, from https://repository.mouau.edu.ng/work/view/capital-structure-and-performance-differentials-in-selected-livestock-poultry-and-piggery-investments-in-abia-state-nigeria-chima-amarachi-a-7-2
AUGUSTINA, AMARACHI. "Capital Structure And Performance Differentials In Selected Livestock (Poultry And Piggery) Investments In Abia State, Nigeria:- Chima, Amarachi A." Mouau.afribary.org. Mouau.afribary.org, 23 Nov. 2023, https://repository.mouau.edu.ng/work/view/capital-structure-and-performance-differentials-in-selected-livestock-poultry-and-piggery-investments-in-abia-state-nigeria-chima-amarachi-a-7-2. Accessed 23 Nov. 2024.
AUGUSTINA, AMARACHI. "Capital Structure And Performance Differentials In Selected Livestock (Poultry And Piggery) Investments In Abia State, Nigeria:- Chima, Amarachi A.". Mouau.afribary.org, Mouau.afribary.org, 23 Nov. 2023. Web. 23 Nov. 2024. < https://repository.mouau.edu.ng/work/view/capital-structure-and-performance-differentials-in-selected-livestock-poultry-and-piggery-investments-in-abia-state-nigeria-chima-amarachi-a-7-2 >.
AUGUSTINA, AMARACHI. "Capital Structure And Performance Differentials In Selected Livestock (Poultry And Piggery) Investments In Abia State, Nigeria:- Chima, Amarachi A." Mouau.afribary.org (2023). Accessed 23 Nov. 2024. https://repository.mouau.edu.ng/work/view/capital-structure-and-performance-differentials-in-selected-livestock-poultry-and-piggery-investments-in-abia-state-nigeria-chima-amarachi-a-7-2