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Analysis Of Capital Structure And Efficiency Of Capital Employedin Agro-Allied Firms In Nigeria

Author

Listed:
  • BASSEY, Nsikan E.
  • ARENE, C.J.
  • OKPUKPARA, B.C.

Abstract

The study examines and compares the capital structure and efficiency of capital employed between listed and unlisted agro-based firms in Nigeria. Data collected from 88 agro-based firms using random sampling technique for the period 2005-2010 were analysed using Z-test, Capital Structure Ratio (CSR) and Return on Capital Employed Ratio (ROCE) analysis as well as descriptive statistics. The result revealed significant differences between the capital structure of listed and listed agro-based firms. Listed agro-based firms recorded the highest debt to equity ratio than their unlisted counterpart. Short term debts also constituted a greater percentage of the total debt ratios of both sample groups. Unlisted agro firms were more efficient than listed firms in terms of return on capital employed. Accordingly, series of recommendations have also been offered.

Suggested Citation

  • BASSEY, Nsikan E. & ARENE, C.J. & OKPUKPARA, B.C., 2014. "Analysis Of Capital Structure And Efficiency Of Capital Employedin Agro-Allied Firms In Nigeria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 17(2), pages 1-5, November.
    • Handle: RePEc:ags:roaaec:196623
    DOI: 10.22004/ag.econ.196623
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    References listed on IDEAS

    as
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    3. Graham C. Hall & Patrick J. Hutchinson & Nicos Michaelas, 2004. "Determinants of the Capital Structures of European SMEs," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(5-6), pages 711-728.
    4. Graham C. Hall & Patrick J. Hutchinson & Nicos Michaelas, 2004. "Determinants of the Capital Structures of European SMEs," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 31(5‐6), pages 711-728, June.
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    Cited by:

    1. Bassey, Nsikan Edet & Ukpe, Offiong Uma & Solomon, Ubong Udo, 2017. "The Effect of Capital Structure Choice on the Performance of Corporate Organizations: A Case of Quoted Agro-Based Firms in Nigeria," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 6(2), pages 58-67, June.

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    Keywords

    Agribusiness; Agricultural Finance;

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