This section discussed the finding of the study on influence of capital structure on the profitability of
listed Nigerian banks:
The impact of LEVI on ROA: The result of the regression analysis indicates that total debts ratio (LEVI) is positively signed and statistically significant at 5% level of significant. The result indicated that a unit change in total debt ratio (LEVI) will lead to 25% increases in Return on asset (ROA). this result is corresponding with the findings of Ahmad, Abdullah and Roslan (2012) which stated that total debt has a significant positive influence on return on asset of selected firms. This result show that capital structure has a significant positive influence on the profitability of Nigerian banks during the period of study
The impact of LEVII on ROA: The result of regression analysis presented in table 2 also shows that LEVII is positively signed and statistically significant at 5% level of significant. This result indicated that a unit change in equity ratio (LEVII) will lead to 20% increase in return on assets (ROA), this result show that capital structure has significant positive influence on the performance of Nigerian banks during the period of study. This result is corresponding with findings of Zeitun and Tian (2007)
From this finding, it was discovered that there is a significant effect of capital structure on Banks profitability. It means that decisions on capital structure taken by the banks affect the profitability of the banks.
đang được dịch, vui lòng đợi..