Open AccessEffect of Earnings Per Shares on Capital Structure Choice of Listed Non-Financial Firms in Nigeria
Author(s) -
Olanrewaju Isola Fatoki,
Tobias Olweny
Publication year - 2017
Publication title -
european scientific journal
Language(s) - English
Resource type - Journals
eISSN - 1857-7881
pISSN - 1857-7431
DOI - 10.19044/esj.2017.v13n34p230
Subject(s) - capital structure , earnings , franchise , causality (physics) , business , value (mathematics) , capital (architecture) , earnings per share , economics , monetary economics , finance , accounting , statistics , debt , business administration , physics , mathematics , archaeology , quantum mechanics , history
The main objective of this paper is to examine the effect of financial performance on capital structure of listed non-financial firms in Nigeria. This was guided by assessing the earnings per share on capital structure choice. The causal research design was adopted while a total of 87 samples was included in the study. The estimated results are statistically significant at all levels of Capital Structure. Based on the significance of these results it was concluded that both the efficiency risk and franchise value hypotheses of the reverse causality hypothesis are observable in the capital structure choice of the firms.