TY  - JOUR
T1  - Capital Structure and its Deterinants: Case of Quoted Firms in Agriculture and
Agro-Allied Sector of the Nigerian Economy
AU - Olubukola Otekunrin, Adegbola AU - Oluseyi Ajiboye, Babatunde AU - Joseph Adama, Ibrahim AU - Felix Eluyela, Damilola AU - Adeniran Fakile, Samuel AU - Z. AGBA, Dominic AU - Kolawole Olowookere, Johnson 
JO  - Journal of Engineering and Applied Sciences
VL  - 14
IS  - 24
SP  - 9667
EP  - 9676
PY  - 2019
DA  - 2001/08/19
SN  - 1816-949x
DO  - jeasci.2019.9667.9676
UR  - https://makhillpublications.co/view-article.php?doi=jeasci.2019.9667.9676
KW  - result
KW  -current liabilities
KW  -non-current liabilities
KW  -shareholder equity
KW  -Capital structure
KW  -supports
AB  - Results of extant researches on capital structure and its determinants are mixed. However, most of
these extant researches had been conducted in the pre-International Financial Reporting Standard (hereafter
referred to as IFRS) era. This gives rooms for further studies on this area of study. Hence, this study adopted
post IFRS period from 2012-2016 to examine the relationship between capital structure proxied by Non-Current
Liabilities (hereafter referred to as NCURLIAB) as well as Current Liabilities (hereafter referred to as CURLIAB)
and its determinant proxied by Shareholder Equity (hereafter referred to as SHEQUITY) and Profit before
Interest and Tax (hereafter referred to as PBIT) in post era using quoted firms in agriculture and agro-allied
sector of the Nigerian economy. This research used ordinary least square regression analysis. Secondary data
used were obtained the firm’s audited annual reports. The result indicates that NCURLIAB and SHEQUITY are
negatively and significantly related. The result also shows that CURLIAB and SHEQUITY are negatively and
significantly related. NCURLIAB and PBIT are also negatively and significantly related. This shows profitable
firms with sufficient SHEQUITY do not depend on either NCURLIAB or CURLIAB to fund its business
operation. However, CURLIAB and PBIT are positively and significantly related. This suggests that most of
CURLIAB are at little or no cost to firms involved agriculture and agro-allied sector of the Nigerian economy
during period under study, hence, they are more like internal source of fund. This result supports the pecking
order theory. Therefore, we suggest management of firms should generate sufficient reserves for all their future
business needs.
ER  -