This study investigates the impact of capital structure on the performance of listed manufacturing firms in Nigeria. As manufacturing plays a crucial role in national development, understanding the optimal mix of debt and equity financing is vital for strategic financial decisions. Drawing on secondary data from selected Nigerian manufacturing companies, the study which covers a 10 year period from 2015 to 2024, evaluates key performance indicators such as return on assets (ROA), return on equity (ROE), and profit margin in relation to leverage ratios. Using regression analysis, the research identifies the degree to which capital structure affects firm performance. Findings suggest a statistically significant relationship between capital structure and financial performance, emphasizing the need for prudent capital structure management in the Nigerian context. The study contributes to financial management literature and offers policy recommendations for firm managers and financial regulators.
Mohammed et al. (Wed,) studied this question.