Analysis of the Determinants of Capital Structure: Evidence from Unlisted Agro-Based Firms in Nigeria 2005-2010

The study furthers evidence of capital structure theories in developing countries by investigating the determinants of capital structure of a sample of 60 unquoted agro-based firms in Nigeria. Data collected through a multi-stage random sampling for the period 2005-2010 were analyzed using the Ordinary Least Square (OLS) regression and descriptive statistics. The result revealed that only growth and educational level of firms’ owners were significant determinants of both long and short-term debt ratios. While asset structure, age of firms, gender of owners and export status impacted significantly on long–term debt ratios, only business risk, size and profitability of firms were major determinants of short-term debt ratio for the firms under investigation. This, therefore, informed the need to pursue policies that would encourage asset accumulation, promote exportation, address gender inequality and reduce business risk as policy measures.