Abstract
This study examines the effect of firms specific on the capital structure of quoted insurance firms in Nigeria. The study adopts an ex-post facto research design. The data were collected from the sampled insurance firms' annual reports from (1992 to 2022). This study measures firm capital structure using financial leverage. The study employs multiple regression techniques for analysis with STATA version 17. The result of the random regression model was favored by the Hausman Specification Test. It was revealed that that profitability has a significant and positive impact on the capital structure of listed insurance firms in Nigeria. The study as well concluded that firm liquidity insignificantly impacts the capital structure of the selected insurance firms in Nigeria. The study concluded that firm size insignificantly and negatively impacts the capital structure of the selected insurance firms in Nigeria. Thus, the study recommends among others that larger firms should take advantage of economies of scale in their operations. This can reduce operational costs, leading to increased profitability and better capital structure management. By efficiently utilizing resources, larger firms can negotiate better terms with suppliers and service providers, thereby improving their financial stability.
Published Version
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 call