Theoretical Review of Determinants of Financial Structure of Firms in Nigeria
1. Abstract of Emerging Trends in Scientific Research, 2014, Vol.1
DOI: 10.18488/journal.1002/2014.1/1002.1
1st
International Conference on Emerging Trends in
Scientific Research
15-16 March, 2014
Pearl International Hotel Kuala Lumpur, Malaysia
Conference Website: www.pakrdw.com
1
Paper ID: 01/14/1
st
ICETSR
Theoretical Review of Determinants of Financial Structure of
Firms in Nigeria
Babalola Yisau Abiodun1
1
Accounting and Auditing Department Volodymyr Dahl East Ukrainian National University, Lugansk,
Ukraine
Abstract
This paper examines the determinants of financial structure decisions of manufacturing
firms in Nigeria. The financial structure of a firm consists of a particular combination of
debt and equity issues to relieve potential pressures on its long-term financing. This paper
examined information of manufacturing sector in Nigeria with the aim of discovering major
determinants of its financial structure. The paper also highlighted issues such as financial
distress, bankruptcy threats, solvency problem, risk of default due to unstable economic
and political situations as possible dangers that may plague firms whose capital structure
may lean towards debt financing.
Keywords: Financial structure, Determinants factors, Debts, Equity and manufacturing firms.
