The Effect of Capital Structure on the Profitability of Insurance Companies in Nigeria
Student: Abideen Sunday Akande (Project, 2025)
Department of Accounting
Osun State University, Osogbo, Osun State
Abstract
AbstractThis study examined the impact of capital structure on the profitability of quoted insurance companies in Nigeria from 2012 to 2022. Variables such as Return on Equity, Total Debt Ratio, Debt to Equity Ratio, and Liquidity Ratio were used. Data were obtained from the financial statements of insurance companies listed on the Nigerian Stock Exchange. The study employed descriptive statistics, correlation, unit root test, heteroscedasticity test, and Ordinary Least Squares (OLS) regression. Findings show that capital structure significantly influences profitability. High leverage reduces profit due to financial risk, while a balanced debt–equity mix improves profitability. The study recommends maintaining an optimal debt level that balances leverage benefits with financial risks.
Keywords
For the full publication, please contact the author directly at: akandeabideensunday@gmail.com
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Institutions
- Redeemers University, Ede, Osun State 4
- Rhema University, Aba, Abia State 11
- Rivers State University of Science and Technology, Port Harcourt, Rivers State 3
- RIVERS STATE UNIVERSITY, PORT HARCOURT, RIVERS STATE 13
- Rufus Giwa Polytechnic, Owo, Ondo State 2
- Saadatu Rimi College of Edu, Kumbotso, Kano State (affiliated To Abu, Zaria) 1
- Salem University, Lokoja, Kogi State 4
- School of Health Information Mgt (Uch, Ibadan), Oyo State 5
- School of Health Information Mgt, Oau Teaching Hospital, Ile-Ife, Osun State 30
- Skyline University Nigeria, Kano, Kano State 2