Abstract
The paper seeks to examine organizational age effect on debt to equity ratio in Nigeria. The main objective of the study was to examine organizational age effect on debt to equity ratio. The relevant literature was reviewed for the purposes of this study. This study adopts the ex-post facto design. The paper uses secondary data only extracted from the Annual Reports and Accounts of 16 sampled firms out of the insurance companies in Nigeria. The target population of this study is the thirty-two (32) quoted insurance firms on the Nigerian Stock Exchange (NSE) and random sampling technique was used. Multiple regressions were used to analyse data and the hypotheses was tested at 5% significant level using Statistical Package for Social Sciences (SPSS). It was found that Organizational age does not have significant effect on Debt to Equity Ratio (p value = 0.737). The study recommended that managers should consider the organizational age effect on debt to equity ratio.
Highlights
One of the most repeatedly discussed subjects in financial management is that of organizations’ capital structure
The external factors, which are outside the control of the firms, can be classified into political/legal, social, economic and technological, while the internal factors are within the control of the firms and include the determinants of capital structure i.e. size, growth, profitability, tangibility and age
The results showed that age is positively correlated with Leverage
Summary
One of the most repeatedly discussed subjects in financial management is that of organizations’ capital structure. In Nigeria, companies do not seem to have lived up to expectation of achieving optimum capital structure If this is not achieved, it is at the peril of both the providers of capital and the firm itself. In addition to deposit insurance (implicit or explicit), official capital structure regulations play a crucial role in aligning the incentives of owners of firms with clients. It is not altogether clear whether the imposition of capital requirements reduces risk-taking incentives. This study attempts to determine organizational age effect on debt to equity ratio in Nigeria. The study aims at determining whether the independent or explanatory variable (organizational age), statistically and significantly influence the explained or dependent variable (Debt to Equity Ratio) and to identify organizational age effect on debt to equity ratio in Nigeria
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Academic Research in Business and Social Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
