Capital Structure and Financial Returns: Longitudinal Panel Evidence from NReits
Journal Title: Journal of Economics, Finance and Management Studies - Year 2021, Vol 4, Issue 01
Abstract
The study is an investigation of the nexus between capital structure and financial returns. The investigation was conducted on a panel data of all real estate investment trusts in Nigeria (N-REITs) listed in the Nigerian Stock Exchange during 2009 to 2020. The independent variable was capital structure indicators of short-term debt, long-term debt and total debt. The dependent variable was proxied using 3 accounting measures of return on asset, return on equity and earnings per share. Data was sourced from secondary sources, specifically from the annual records and financial statements of N-REITs for the period. Upon data analysis with regression, the study found that capital structure had an insignificant relationship with the financial returns of N-REITs. However, for Sky Shelter Fund REIT, the result was contrary due to its statistically significant positive relationship between capital structure and returns. The findings of the study on the means, median and standard deviation of NREIT capital structures shows a compliance with the pecking-order hypothesis of firm financing.
Authors and Affiliations
Njideka Maryclara Aguome , Oluchi Adeline Diala , Chicheta Francis Nissi
Keywords
Related Articles
- EP ID EP691411
- DOI 10.47191/jefms/v4-i1-03
- Views 185
- Downloads 0
Community Service: Financial Management Training for Indonesian Immigrant Workers in Hong Kong before Return to Indonesia
The Faculty of Economics and Business as a form of the Tri Darma of Higher Education has carried out community service in collaboration with the Bina Nusantara Learning Center. This activity is an activity for Indonesian...
The Determinants of Farmers’ Suicide in Karnataka – An Econometric Analysis
Karnataka is an agrarian state and one of the eighth largest state in India, in the area and seventh state in population. In Karnataka state, about 76% of the population lives in rural areas and about 56% of the workfor...
Financial Literacy in Financial Management and FAS Implementation: AIS as Moderator
Micro, Small, and Medium Enterprises (MSMEs) are the drivers of a country's economic activities. However, socialization and training on understanding to be able to do good business management is still lacking. MSME actor...
Macroeconomic Drivers of Economic Growth
Kenya's GDP growth is hampered by high fiscal deficits, high interest rates, and volatile exchange rates. As a result, the economy has experienced sluggish cycles of low economic growth, prompting policymakers to revise...
Financial Performance Evaluation of A Bankrupt Bank: The Case of Silicon Valley Bank
The aim of this research paper is to evaluate and compare the financial performance of Silicon Valley Bank spanning the two-year period prior to its eventual bankruptcy in March 2023, using financial data derived from th...