ABSTRACT

The effect of capital structure on firm's value plays a significant role in influencing the organization performance. However, very few studies have shown how capital structure influence firm's performance in Nigeria. This research aims at examining the effect of capital structure on the value of quoted manufacturing companies in Nigeria, to examine the effect of long term debt on the revenue of quoted manufacturing companies. To ascertain the effect of short term debt on revenue of quoted manufacturing companies in Nigeria, to determine the effect of equity on the revenue of quoted manufacturing companies in Nigeria. This study uses the Modigliani and Miller (MM) Irrelevancy theory, the pecking order theory, the trade-off theory and the agency theory. The study adopted an ex-post facto design. The study was carried out in firms listed in the Nigerian stock exchange for the period ranging from 2009 to 2015 (i.e a period of 7years). The study utilized data from four agro companies in the Nigerian stock exchange. Descriptive statistics where used to summarize the collected data in a clear and understandable way using numerical approach. Multiple regressions technique using ordinary least square (OLS) method is adopted in investigating the relationship between the dependent and independent variables. Research findings show that long term debt and equity financing has a significant effect on the revenue of firms while short term debt has no significant effect on the revenue of firms.