Live Covid-19
United States 100,863,106
Cases: 100,863,106
Deaths: 1,106,860
Recovered: 98,283,998
Active: 1,472,248
India 44,674,667
Cases: 44,674,667
Deaths: 530,628
Recovered: 44,138,235
Active: 5,804
France 38,067,974
Cases: 38,067,974
Deaths: 159,093
Recovered: 36,974,097
Active: 934,784
Germany 36,557,861
Cases: 36,557,861
Deaths: 158,198
Recovered: 35,869,800
Active: 529,863
Brazil 35,408,852
Cases: 35,408,852
Deaths: 690,231
Recovered: 34,262,104
Active: 456,517
South Korea 27,331,250
Cases: 27,331,250
Deaths: 30,769
Recovered: 26,382,172
Active: 918,309
Japan 25,220,452
Cases: 25,220,452
Deaths: 50,344
Recovered: 20,754,250
Active: 4,415,858
Italy 24,488,080
Cases: 24,488,080
Deaths: 181,733
Recovered: 23,799,178
Active: 507,169
United Kingdom 24,024,746
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Deaths: 197,253
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Active: 72,892
Russia 21,617,601
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Deaths: 392,231
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Turkey 17,005,537
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Deaths: 101,400
Recovered: –
Active: 16,904,137
Spain 13,614,807
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Vietnam 11,517,722
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Active: 865,623
Australia 10,754,429
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Argentina 9,739,856
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Deaths: 130,034
Recovered: 9,590,198
Active: 19,624
Netherlands 8,544,770
Cases: 8,544,770
Deaths: 22,920
Recovered: 8,498,809
Active: 23,041
Taiwan 8,369,226
Cases: 8,369,226
Deaths: 14,478
Recovered: 8,036,406
Active: 318,342
Iran 7,559,855
Cases: 7,559,855
Deaths: 144,640
Recovered: 7,335,301
Active: 79,914
Mexico 7,132,792
Cases: 7,132,792
Deaths: 330,525
Recovered: 6,400,759
Active: 401,508
Indonesia 6,680,203
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Deaths: 159,978
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Active: 50,987
Poland 6,354,402
Cases: 6,354,402
Deaths: 118,340
Recovered: 5,335,940
Active: 900,122
Colombia 6,318,021
Cases: 6,318,021
Deaths: 141,911
Recovered: 6,142,640
Active: 33,470
Austria 5,576,695
Cases: 5,576,695
Deaths: 21,232
Recovered: 5,508,210
Active: 47,253
Portugal 5,546,290
Cases: 5,546,290
Deaths: 25,517
Recovered: 5,500,769
Active: 20,004
Greece 5,404,690
Cases: 5,404,690
Deaths: 34,309
Recovered: 5,338,821
Active: 31,560
Ukraine 5,341,284
Cases: 5,341,284
Deaths: 110,586
Recovered: 5,216,858
Active: 13,840
Malaysia 5,000,332
Cases: 5,000,332
Deaths: 36,713
Recovered: 4,941,114
Active: 22,505
Chile 4,937,047
Cases: 4,937,047
Deaths: 62,571
Recovered: 4,858,162
Active: 16,314
North Korea 4,772,813
Cases: 4,772,813
Deaths: 74
Recovered: 4,772,739
Active: 0
Israel 4,727,322
Cases: 4,727,322
Deaths: 11,878
Recovered: 4,704,016
Active: 11,428

Determinant of Capital Structure of Listed Insurance Firms in Nigeria Stock Exchange

Determinant of Capital Structure of Listed Insurance Firms in Nigeria Stock Exchange

ABSTRACT

This focus of this study is to examine the determinant of listed insurance firms in Nigeria stock exchange. The purpose of the study was to determine; the effect of profitability on debt to equity ratio, to ascertain the effect of tangibility on debt to equity ratio. This study adopts the ex-post facto i.e. after the fact or event. The paper uses secondary data only extracted from the Annual Reports and Accounts of 16 sampled firms out of the insurance companies in Nigeria representing 50% of the population. Random sampling technique is employed to select the firms so as to ensure that all the firms have equal chance of representation and also depending on availability of data. Multiple regression is used as a tool of analysis for the study covering a period of 11 years (2006-2016) using Statistical Package for Social Scientists (SPSS). The population of this study is the thirty-two (32) quoted insurance firms on the Nigerian Stock Exchange (NSE) as at 31st December, 2016. The result of the study revealed that profitability has a significant negative effect on Debt to Equity Ratio; tangibility has an insignificant positive effect on Debt to Equity Ratio. The study recommended that Managers should consider the effect of profitability on capital structure when making financial decisions, Insurance Firms should increase their retained earnings as much as possible and plough it back into the business so as to make external financing (debt or equity or a combination of both) a last resort according to the pecking order theory, the effect of tangibility on capital structure is vital in making decisions on debt and equity financing, emphasis should be on increasing total assets and not just fixed tangible Assets so as to minimize external borrowing and possible liquidation thereby incurring Bankruptcy Costs.

Keywords: Capital Structure; Insurance Firms; Nigeria Stock Exchange; Debt to Equity Ratio

Authorship
1Ugwu, Kevin Okoh, PhD., 2Uzoma Friday Christopher, and 3Obasuyi, George D.

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