The Effect of Capital Structure on the Profitability of Non-Bank Financial Institutions: An Empirical Evidence from the Ghana stock exchange

The Effect of Capital Structure on the Profitability of Non-Bank Financial Institutions: An Empirical Evidence from the Ghana stock exchange

Takyi Kwaben Nsiah, Cheng Li Mei, Mohammed Musah, Frank Antwi

This research aimed to investigate the effects of capital structure on profitability of listed non-bank financial institutions (NBFIs) on the Ghana Stock Exchange (GSE). The research used panel data obtained from the fifteen (15) companies, for the period 2010-2017. In the study, short-term debt (STDTA, long-term debt (LTDTA), firm size (SZ) and liquidity (LQDTY) as a measure for capital structure while Return on Asset (ROA) measure profitability. Result: The study findings show that there is a negative and statistically significant relationship between short-term debt and profitability. However, long-term debt indicates a positive and significant association with the profitability of the firms. The findings of this empirical research are of higher significance for developing nations such as Ghana because it calls for the concentration of firm’s leadership and policymakers to pursue measures that decrease or increase debt dependence in order to achieve optimal capital structure.

2019

https://scholar.google.com/citations?view_op=view_citation&hl=en&user=-U-tBVYAAAAJ&cstart=20&pagesize=80&citation_for_view=-U-tBVYAAAAJ:WF5omc3nYNoC

English