COMPARATIVE STUDY OF THE DETERMINANTS OF CAPITAL STRUCTURE OF QUOTED AND UNQUOTED AGRO-BASED FIRMS IN NIGERIA

The study examined the determinants of capital structure decision and compared the capital structure of quoted and unquoted agro-based firms in Nigeria. Data collected through a multi-stage random sampling from the financial statements of 28 quoted and 60 unquoted agro-based firms for the period 200...

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Bibliographic Details
Published in:International journal of food and agricultural economics 2014-04, Vol.2 (2), p.155-168
Main Authors: Bassey, Nsikan Edet, Arene, Chukwuemeka John, Akpaeti, Aniekan Jim
Format: Article
Language:English
Subjects:
Agribusiness
Bankruptcy
Capital structure
Comparative analysis
Conflicts of interest
debt
Debt financing
Efficient markets
explanatory variable
Gender
Hypotheses
Long term debt
long- term
Political Economy
Productivity Analysis
Profitability
Profits
Ratios
Short term debt
Short-term
Studies
Taxes
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Summary:The study examined the determinants of capital structure decision and compared the capital structure of quoted and unquoted agro-based firms in Nigeria. Data collected through a multi-stage random sampling from the financial statements of 28 quoted and 60 unquoted agro-based firms for the period 2005-2010, which were analyzed using descriptive statistics, Z-test and Ordinary Least Square regression. The result revealed significant differences in capital structure (long term debt and total debt use) between quoted and unquoted agro-based firms. Short-term debts constituted a higher proportion of total debts of both sampled groups. The regression result showed that firm size, asset structure and growth coefficients had significant positive relationships with both long and short term debt finance for both listed and unlisted agro-based firms respectively. Result further showed that age of firms, educational status of CEO, export status of firms, and gender of firm owners were positive and significantly related to long term debt for both listed and unlisted firms.
ISSN:2147-8988
2149-3766
DOI:10.22004/ag.econ.168588