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
- Sokoto State University, Sokoto, Sokoto State 42
- St. Albert The Great Major Seminary, Abeokuta. (affl. To University of Benin) 1
- Sule Lamido University, Kafin Hausa, Jigawa State 4
- Tai Solarin University of Education, Ijagun, Ogun State 18
- Tansian University, Oba, Anambra State 1
- Taraba State University, Jalingo, Taraba State 32
- Temple-Gate Polytechnic, Osisioma, Abia State 1
- The Oke-Ogun Polytechnic, Saki, Oyo State 6
- The Polytechnic, Ibadan, Oyo State 13
- THOMAS ADEWUMI UNIVERSITY, OKO-IRESE, KWARA STATE 1