Effect of Capital Structure on the Performance of Brewery Firms in Nigeria

Abstract

The impact of capital structure on the performance of Nigerian brewery firms was investigated in this study. The precise aims for this research were as follows: determine the effects of long- term debt financing, short-term loan financing, and equity financing on the profit for the year of brewery enterprises in Nigeria. It was decided to use an ex – post facto study design. The study's analytical technique was a random panel regression model, with descriptive statistics and the unit root test as preliminary tests. Long-term loan financing, short-term debt financing, and equity financing all have a substantial impact on the profit of Nigerian brewery enterprises for the year. The study concluded that a firm's capital structure should be carefully constructed to protect the interests of stock holders, shareholders, and the firm's financial needs.