ABSTRACT
The study examined the effect of
capital structure on corporate performance with reference to First Bank
interviews were used to information from first bank Nig. Aba, analysis and
observations were made which gave rise to the validity of the conclusion at the
end of the analysis, the major finding were: That there is relationship between
capital structure arid cost of capital. That capital structure have significant
effect on corporate performance (in terms of profitability') that there is a
high cost of capital which hinders the companies borrowing ability. The
recommendations for the study among others were: that companies should increase
their efficiency in use of debt capital. That since cost of borrowing is so
high, if a firm should be able to service fixed charges associated with senior
securities and leasing, it can borrow. That for improved performance mostly on
profitability the optimum combination of fund from varying sources which is
superior to any alternative combination is necessary. The researcher than
concludes that; The inability of many companies to adopt optimal capital
structure has been increasing their cost of capital. Due to increase in the
cost of capital for many firms, they were unable to borrow in order to meet up
their capital investment hence the decrease in their performance mostly on
profitability.
EMEREUWA, U (2021). Effect Of Capital Structure On Corporate Performance (A Study Of First Bank) . Mouau.afribary.org: Retrieved Nov 27, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-capital-structure-on-corporate-performance-a-study-of-first-bank-7-2
U., EMEREUWA. "Effect Of Capital Structure On Corporate Performance (A Study Of First Bank) " Mouau.afribary.org. Mouau.afribary.org, 27 Jul. 2021, https://repository.mouau.edu.ng/work/view/effect-of-capital-structure-on-corporate-performance-a-study-of-first-bank-7-2. Accessed 27 Nov. 2024.
U., EMEREUWA. "Effect Of Capital Structure On Corporate Performance (A Study Of First Bank) ". Mouau.afribary.org, Mouau.afribary.org, 27 Jul. 2021. Web. 27 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-capital-structure-on-corporate-performance-a-study-of-first-bank-7-2 >.
U., EMEREUWA. "Effect Of Capital Structure On Corporate Performance (A Study Of First Bank) " Mouau.afribary.org (2021). Accessed 27 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-capital-structure-on-corporate-performance-a-study-of-first-bank-7-2