An assessment of Nigeria's capital structure and its determinants from global recessions

• Main Author: Haladu, Alhassan
• Format: Article
• Language: English
• Published: Society of Scientific Research and Education (SSRE) 2016
• Subjects: HJ Public Finance
• Online Access: http://repo.uum.edu.my/21846/1/IJMRR%206%207%202016%20923%20933.pdf; http://repo.uum.edu.my/21846/; http://ijmrr.com/admin/upload_data/journal_Alhasan%20haladu%20%206jul16mrr.pdf

Capital structure is a very important component of business organizations.It is an index of many variables that may affect both short-run and long-run decisions as interested parties both within and outside the organization may use it to determine many future activities.In Nigeria our economy is highly in need of foreign capital for the long-term financing of businesses.The 2008 recession adversely affected the capital structure of most of the businesses operating in Nigeria especially financial institutions.Foreign investments were withdrawn to finance deficits abroad.This paper aims at investigating the causes of the global economic meltdown and how it helps shaped Nigeria’s capital structure’s relationship with determinant variables.Documentary sources were the main source of data used for this paper.The massive level of poverty in the country served as a favorable breeding ground for the impacts of the global economic meltdown to be very effective.In addition, the openness of our economy which is import dependent makes it vulnerable to global economic impacts. Thus the result was massive outflow of capital and drastic restructuring in most financial institutions which lead to unemployment and high inflation rates.It is therefore, advisable for the government to set up a committee on global economic matters to advice from time-to time on global economic performances so as to avert being taken unawares in case of future occurrence of economic crisis.