Effect of Financial Structure on the Performance of Cement Manufacturing Companies in Nigeria

UTILE BEM JOSEPH, IKYA EMMANUEL & AKWUOBU FEBISADE SEFUNMI

Department of Accounting

Federal University of Agriculture, Makurdi

Email: utilebem&@gmail.com

ABSTRACT

This paper reviews related literature on the effect of capital structure on the performance of cement manufacturing firms in Nigeria. The researcher used secondary information gathered from books, journals and internet materials. Findings revealed that managers of firms are under pressure to determine the right proportion of debt and equity that would be used to achieve optimal financial performance. It was concluded that researchers are yet to reach a compromise on the optimal capital structure of a firm that would maximize firm’s performance. It has been recommended that as managers continue to vary the debt to equity proportions more research should be conducted to find out an optimal capital structure that would optimize firm’s performance.