IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

This study examined the impact of capital structure on financial performance of listed deposit money banks (DMB) in Nigeria. The objectives of the study are to examine the impact of debt capital, to determine the impact of equity capital and to ascertain the impact of debt to equity ratio on financial performance of listed deposit money banks in Nigeria. The study adopted expost research and correlational design on the secondary data obtained from the annual reports and accounts of the sampled banks from 2009-2018. The data obtained from secondary source was analyze using multiple Regression analysis and panel data estimate model. The results revealed that debt ratio has a positive significant impact on financial performance of listed deposit money banks in Nigeria. The study also revealed that equity ratio has negative significant impact on financial performance. While debt to equity ratio has a positive significant impact on financial performance of listed deposit money banks in Nigeria.The Study Recommends Among Others That The management of deposit money banks in Nigeria should always consider debt financing decisions in the right mix in order to achieve optimum capital structure that will guarantee maximization of shareholders’ wealth.