Impact Of Capital Structure On The Profitability Of Quoted Insurance Companies In Nigeria PDF Download
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Author:
Publisher: GRIN Verlag
ISBN: 334655063X
Category : Business & Economics
Languages : de
Pages : 67
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Book Description
Studienarbeit aus dem Jahr 2020 im Fachbereich BWL - Bank, Börse, Versicherung, , Sprache: Deutsch, Abstract: The study examines the impact of capital structure on the profitability of Nigerian quoted insurance companies with specific emphasis on AIICO Plc which is one of the 15 quoted insurance companies in Nigeria. The scope covers the period of ten (10) years (2010 to 2020). AIICO PLC was selected based on the criteria of data availability. The study assists financial managers of firms to determine the proportion of equity capital and debt capital (capital structure) to obtain the debt financing mix that will optimize the value of the firm. This study, therefore, has contributed to the literature by examining capital structure and profitability of Nigerian quoted insurance companies. The study aids in the understanding of the impact of capital structure on insurance profitability. This has helped us to understand the impact of capital structure in profitability of Nigeria quoted insurance companies. The outcome from this study will help decisions on capital structure and allow the policy makers in formulating informed policies on capital structure and also to measure the implications of such policies on the operations of quoted insurance companies. This will go a long way in helping investors in deciding whether to pull out their share in pursuance of capital gains or preserve their stake in a corporation. The study will contribute to existing body of knowledge by investigating capital structure and profitability of Nigerian quoted insurance companies.
Author:
Publisher: GRIN Verlag
ISBN: 334655063X
Category : Business & Economics
Languages : de
Pages : 67
Get Book Here
Book Description
Studienarbeit aus dem Jahr 2020 im Fachbereich BWL - Bank, Börse, Versicherung, , Sprache: Deutsch, Abstract: The study examines the impact of capital structure on the profitability of Nigerian quoted insurance companies with specific emphasis on AIICO Plc which is one of the 15 quoted insurance companies in Nigeria. The scope covers the period of ten (10) years (2010 to 2020). AIICO PLC was selected based on the criteria of data availability. The study assists financial managers of firms to determine the proportion of equity capital and debt capital (capital structure) to obtain the debt financing mix that will optimize the value of the firm. This study, therefore, has contributed to the literature by examining capital structure and profitability of Nigerian quoted insurance companies. The study aids in the understanding of the impact of capital structure on insurance profitability. This has helped us to understand the impact of capital structure in profitability of Nigeria quoted insurance companies. The outcome from this study will help decisions on capital structure and allow the policy makers in formulating informed policies on capital structure and also to measure the implications of such policies on the operations of quoted insurance companies. This will go a long way in helping investors in deciding whether to pull out their share in pursuance of capital gains or preserve their stake in a corporation. The study will contribute to existing body of knowledge by investigating capital structure and profitability of Nigerian quoted insurance companies.
Author: Olawale Sanni
Publisher:
ISBN:
Category :
Languages : en
Pages : 10
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Book Description
This study examined the effect of capital structure on profitability of listed insurance firms in Nigeria for the period of 2013-2017 The study used correlational research design. Data were collected from the published annual financial reports of studies listed insurance firms in Nigeria. The population of the study comprised of the 28 listed insurance firms. The sample size was fifteen (15) listed insurance firms in Nigeria. The data collected were analyzed with the aid of OLS multiple regression technique. Using 75 firm-year paneled observations, the result of the ordinary least square regression showed that short-term debt has a negative and significant effect on the profitability of listed insurance firms in Nigeria while long-term debt and premium growth have positive and significant effect on profitability of listed insurance firms in Nigeria. Based on the findings, the study recommended that the management of listed insurance firms should strive towards having optimum capital structure by increasing their equity level and reducing dependence on debts so as to avoid being cash strapped and debt ridden. Keywords: profitability, short-term debt, long-term debt and premium growth.
Author: Mohammed Kakanda
Publisher:
ISBN:
Category :
Languages : en
Pages : 9
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Book Description
Managers of corporate entities are mostly in confrontation with the problem of; what combination of capital structure (equity and debt) will maximize returns and value of their firms? The study, therefore, aims at assessing the effect of capital structure on the financial performance of listed Consumer goods companies in Nigerian. All consumer goods companies quoted on the Nigerian Stock Exchange are considered the population for this study while seven (7) out of these firms whose accounting year-ends 31 December are considered as the sample. Secondary data was utilized from the annual financial reports of the sampled firms from the year 2008-2013, which was obtained from African Financial website and official website of Nigerian Stock Exchange. The study used ex-post facto research design to examine the relationship between independent and dependent variables while controlling for other variables. Descriptive statistics, correlation, and hierarchical multiple regression analyzes were carried out to test the hypotheses developed in the study. The study found that there is a positive and significant relationship between firm's capital structure and corporate financial performance. The study specifically found that short-term debt (STD) has no significance positive effect on return on equity (ROE) while Long-term debt (LTD) has positive relation and significant effect on ROE. The study recommends that firms should consider the mixture of equity and debt since they are major determinants of corporate performance. Authorities concerned should create an enabling business environment for companies (especially those with low capital) so as to have access to long-term debts to finance their operations and improve performance in the shortrun, instead of using high short-term debts to cushions for financing and profitability problems.
Author: Okolie Ugochukwu Jude
Publisher: GRIN Verlag
ISBN: 3346775356
Category : Business & Economics
Languages : en
Pages : 45
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Book Description
Academic Paper from the year 2021 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 4.5, Ahmadu Bello University, language: English, abstract: This paper analyzes the effect of financial leverage on firms’ performance. The aim was to study the implications of financial leverage on firms performances. Also considering that maximizing accounting profit and maximizing shareholders value are not identical because of shareholders losses from agency costs, it was therefore pertinent to see how capital structure affect shareholders value. The objective of the study was to identify the possible effects of financing leverage on the performance of the company, to establish the relationship between leverage and corporate performance of listed firms in Nigeria, to determine the extent to which capital structure affect shareholders returns, to determine when the shareholder’s wealth can be said to have been maximized given a particular capital structure and to analyze the debt and equity which might result in over capitalization of the firm. The research was designed to collect data through a survey method from five listed firms - Dangote Sugar Refinery, Nestle, Flour Mills, Cadbury, and Nigerian Breweries. Descriptive design (percentages) was used to explain the effect of financial leverage on company’s performance; while analytical design (correlational statistical method) was used to establish the relationship between financial leverage and corporate performance.
Author: Samson Olaniyan
Publisher:
ISBN:
Category :
Languages : en
Pages : 32
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Book Description
This paper examines the effects of capital structure on performance of quoted non-financial firms in Nigeria between 1996 and 2014. The study employed both the first and second generation econometrics method of panel unit root test, principal component analysis, and Generalized Method of Moments. Using return on assets returns on equity, price earnings ratio, Tobin's Q, and constructed Performance Index as measures of firm performance and debt ratio as a measure of capital structure. Our result showed that capital structure has a negative and significant relationship with firm performance. The study concluded that the agency cost of the non-financial firms under the Nigerian Stock Exchange is very high and this leads to negative performance.
Author: D. A. Omole
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 70
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Book Description
Author: Oyesola Salawu
Publisher: LAP Lambert Academic Publishing
ISBN: 9783843350273
Category :
Languages : en
Pages : 192
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Book Description
The study examined the effects of financial risk, firms' characteristics and macroeconomic factors on the capital structure and the rate at which firms adjust towards their target capital. Secondary annual panel data for the period of 1990 to 2006 using 70 non-financial listed companies for analysis were employed. Data were sourced from the Annual Report and Accounts of the sampled firms and the publications of Central Bank of Nigeria. Descriptive method and Generalized Method of Moment (GMM) were used to analyze data. The results indicate a positive coefficient between financial risk and capital structure and those Nigerian companies with higher financial risk tend to use more short-term debt in general. Also, profitability, tangibility, corporate tax rate, age of the firm, earning power, volatility, inflation and foreign direct investment, have significantly positive effects on capital structure. In addition, thirty-eight firms adjust fully to their target capital, while thirty-two over adjust. The study concluded that effective financial risk management and good financing policy decision would greatly improve firms' performance in Nigeria.
Author: David Hillier
Publisher: McGraw-Hill Education
ISBN: 9780077129422
Category : Business & Economics
Languages : en
Pages : 0
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Book Description
The second European edition of Financial Markets and Corporate Strategy provides comprehensive coverage of financial markets and corporate finance, brought to life by real world examples, cases and insights. Placed in a truly international context, this new and updated edition takes an academic and practical view-point to guide students through the challenges of studying and practicing finance. Aimed specifically at an international audience, this edition boasts hundreds of references to new and relevant non-US research papers from top finance journals. Whilst retaining the well respected structure of the successful US text, Professor David Hillier has also made a number of additions which include: Fully updated research, data and examples in every chapter. Coverage of the global financial crisis, the impact it made on the financial markets and the lessons being learnt by the finance industry. A stronger emphasis on corporate governance and agency theory. Updates on accounting standards, bankruptcy laws, tax rules and tax systems.
Author: Nestor Amahalu
Publisher:
ISBN:
Category :
Languages : en
Pages : 23
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Book Description
This study assesses the extent to which cash holding affects the financial performance of quoted insurance firms in Nigeria. Three hypotheses were formulated in line with the objective of the study; Ex-post facto research design and time-series data were adopted and the data for the study were obtained from fact books, annual reports, and account of the quoted insurance companies under study. Pearson coefficient of correlation and multiple regression were applied for the test of the three hypothesis formulated with aid of STATA 13 statistical software. Findings showed that cash holding (proxy by cash to total book value of assets and cash) has a positive and statistically significant effect on financial performance (proxy by Return on Asset, Return on Equity and Tobin's Q) at 5% significant level. Based on these findings, the study recommends among others that insurance companies should adequately manage how they re-invest their resource so as to prevent any form of mismanagement of resource that can guarantee their existence in business.
Author: John Zietlow
Publisher: John Wiley & Sons
ISBN: 1119382599
Category : Business & Economics
Languages : en
Pages : 791
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Book Description
Essential tools and guidance for effective nonprofit financial management Financial Management for Nonprofit Organizations provides students, professionals, and board members with a comprehensive reference for the field. Identifying key objectives and exploring current practices, this book offers practical guidance on all major aspects of nonprofit financial management. As nonprofit organizations fall under ever-increasing scrutiny and accountability, this book provides the essential knowledge and tools professional need to maintain a strong financial management system while serving the organization’s stated mission. Financial management, cash flow, and financial sustainability are perennial issues, and this book highlights the concepts, skills, and tools that help organizations address those issues. Clear guidance on analytics, reporting, investing, risk management, and more comprise a singular reference that nonprofit finance and accounting professionals and board members should keep within arm’s reach. Updated to reflect the post-recession reality and outlook for nonprofits, this new edition includes new examples, expanded tax-exempt financing material, and recession analysis that informs strategy going forward. Articulate the proper primary financial objective, target liquidity, and how it ensures financial health and sustainability Understand nonprofit financial practices, processes, and objectives Manage your organization’s resources in the context of its mission Delve into smart investing and risk management best practices Manage liquidity, reporting, cash and operating budgets, debt and other liabilities, IP, legal risk, internal controls and more Craft appropriate financial policies Although the U.S. economy has recovered, recovery has not addressed the systemic and perpetual funding challenges nonprofits face year after year. Despite positive indicators, many organizations remain hampered by pursuit of the wrong primary financial objective, insufficient funding and a lack of investment in long-term sustainability; in this climate, financial managers must stay up-to-date with the latest tools, practices, and regulations in order to serve their organization’s interests. Financial Management for Nonprofit Organizations provides clear, in-depth reference and strategy for navigating the expanding financial management function.
