Book

Description

The book titled "Impact of Capital Structure on the Income Performance of Publicly Rated Traded Deposit Money Banks” explores how capital structure decisions influence the financial outcomes of deposit money banks listed on the Nigerian Exchange Group. Covering a 20-year period (2003–2022), the book examines significant economic developments, regulatory reforms, and global financial shifts that shaped the banking industry in Nigeria. The book places a lot of emphasis on capital structure choices, or the proportion of debt and equity financing, and how it helps banks reach their financial objectives. It draws attention to the ways that strategic capital structure choices impacted income performance at times like the COVID-19 epidemic, the global financial crisis of 2008, and the banking consolidation of 2004–2005. Using trustworthy historical financial data from publicly listed banks' annual reports, the study examined long-term patterns. Examining the effects of the debt-to-equity ratio, leverage ratio, equity ratio, interest cover ratio, and debt ratio on return on assets was one of the goals. In addition to descriptive statistics, trend and SWOT analyses, the study employed an ex post facto design and panel least squares regression for statistical analysis. The results showed that while the debt ratio and interest cover ratio had a negative influence on return on assets, the equity ratio, debt-to-equity ratio, and leverage ratio had a favorable impact. To maximize shareholder value, reduce borrowing costs, and boost profitability, the book advises bank managers and financial advisers to strike a balance between debt and equity. For banking professionals, analysts, policymakers, and academics who want to comprehend how capital structure and revenue performance relate to each other in Nigeria's ever-changing economic landscape, this book is an invaluable resource.