CAPITAL STRUCTURE, PRODUCTION COST EFFICIENCY AND FINANCIAL PERFORMANCE OF LISTED AGRO- ALLIED FIRMS IN NIGERIA
- Anthonia T. Odeleye
- Aminat O. Olohunlana
- ( paper pages. 1 - 16 )
Abstract
The debate on preference among financing options as regardstechnical efficiency in the corporate world remains inconclusive.Corporate operations are often financed using either debt/equity orboth. The association between efficiency and financing options wasexamined using a 10- year balanced panel of quoted agro-allied firmsin Nigeria between 2007 and 2016. The paper employed dataenvelopment analysis (DEA), stochastic frontier analysis (SFA) andfixed effect regression for its analysis. The impacts of long-term debt,short-term debt and tax liabilities on agro-allied firms’ performancemeasured by input-oriented technical efficiency and returns on assetswere related. Firms’ technical efficiency was found to be positivelyrelated to their share capital, tax liabilities, and long-term debts.However, short-term debts had no effect on production efficiency andreturn on assets.
Citation
Anthonia T. Odeleye, Aminat O. Olohunlana.
2019.
"CAPITAL STRUCTURE, PRODUCTION COST EFFICIENCY AND FINANCIAL PERFORMANCE OF LISTED AGRO- ALLIED FIRMS IN NIGERIA"
The Nigerian Journal of Economic and Social Studies,
61 (3): 1 - 16.
JEL Classification
D24, D20, C10, C80, O40
