Effect of Capital Structure on Financial Performance of Insurance Companies in Nigeria

Registration ID: IJNRD_220636

Published ID: IJNRD2405276

DOI: Click Here to Get

Okpanachi Moses Ojochenemi , Saheed Adesukanmi Oyede (PhD) , Niri Job Mang (PhD) , Irmiya, Solomon Reuben

Capital Structure, Financial Performance, Debt Capital, Equity Capital, Preferential Shares

This study is set out to examine the effect of capital structure on financial performance of insurance companies in Nigeria. The study investigated the relationship between three variables namely, Debt Capital, Equity Capital and Preferential Shares, and the dependent variable of financial performance, proxied by Return on Equity (ROE). The study covers operations of the insurance firms in Nigeria with a period coverage of 2010–2022. Ex-post facto research design was employed by the study and secondary source of data was generated from the Annual Financial Statements of the selected insurance firms. Panel Multiple Regression analysis was used to test the hypotheses stated in this study. The result of the findings revealed that the hypothesis shows positive significant relationship between Debt Equity (DE) and financial performance of insurance company, hypothesis two shows positive significant relationship between Equity Capital (EC) and financial performance of insurance company and hypothesis three shows positive significant relationship between Preferential Shares (PS) and financial performance of insurance company. The study therefore recommends that nsurance companies should consider optimizing their Debt Equity Ratio to improve their financial performance. The positive relationship suggests that a higher level of debt in proportion to equity is associated with better financial performance. Insurance companies should focus on strengthening their Equity Capital to improve their financial performance. Finally, insurance companies should consider strategically utilizing Preferential Shares to enhance their financial performance.

Published Paper   E-Certificate

Okpanachi Moses Ojochenemi, Saheed Adesukanmi Oyede (PhD), Niri Job Mang (PhD), & Irmiya, Solomon Reuben (May-2024). Effect of Capital Structure on Financial Performance of Insurance Companies in Nigeria. INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT, 9(5), c733-c744. https://ijnrd.org/papers/IJNRD2405276.pdf

Volume 9 Issue 5, May-2024

Pages : c733-c744

Paper Reg. ID: IJNRD_220636

Published Paper Id: IJNRD2405276

Downloads: 000121992

Research Area: Management

Country: Jos, Plateau State, Nigeria

Published Paper PDF: https://ijnrd.org/papers/IJNRD2405276.pdf

Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2405276

Journal Name: INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT(IJNRD)

ISSN: 2456-4184 | IMPACT FACTOR: 8.76 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.76 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJNRD (IJ Publication) Janvi Wave | IJNRD.ORG | IJNRD.COM | IJPUB.ORG

This work is licensed under a Creative Commons Attribution 4.0 International License and The Open Definition

Call For Paper - Volume 10 | Issue 10 | October 2025

IJNRD is a Scholarly Open Access, Peer-reviewed, and Refereed Journal with a High Impact Factor of 8.76 (calculated by Google Scholar & Semantic Scholar | AI-Powered Research Tool). It is a Multidisciplinary, Monthly, Low-Cost Journal that follows UGC CARE 2025 Peer-Reviewed Journal Policy norms, Scopus journal standards, and Transparent Peer Review practices to ensure quality and credibility. IJNRD provides indexing in all major databases & metadata repositories, a citation generator, and Digital Object Identifier (DOI) for every published article with full open-access visibility.

The INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT (IJNRD) aims to advance applied, theoretical, and experimental research across diverse fields. Its goal is to promote global scientific information exchange among researchers, developers, engineers, academicians, and practitioners. IJNRD serves as a platform where educators and professionals can share research evidence, models of best practice, and innovative ideas, contributing to academic growth and industry relevance.

Indexing Coverage includes Google Scholar, SSRN, ResearcherID-Publons, Semantic Scholar (AI-Powered Research Tool), Microsoft Academic, Academia.edu, arXiv.org, ResearchGate, CiteSeerX, ResearcherID (Thomson Reuters), Mendeley, DocStoc, ISSUU, Scribd, and many more recognized academic repositories.

How to submit the paper?

By Our website

Click Here to Submit Paper Online

By Mail

Send your paper to editor@ijnrd.org

Important Dates for Current issue

Paper Submission Open For: October 2025

Current Issue: Volume 10 | Issue 10 | October 2025

Impact Factor: 8.76

Last Date for Paper Submission: Till 31-Oct-2025

Notification of Review Result: Within 1-2 Days after Submitting paper.

Publication of Paper: Within 01-02 Days after Submititng documents.

Frequency: Monthly (12 issue Annually).

Journal Type: IJNRD is an International Peer-reviewed, Refereed, and Open Access Journal with Transparent Peer Review as per the new UGC CARE 2025 guidelines, offering low-cost multidisciplinary publication with Crossref DOI and global indexing.

Subject Category: Research Area

Call for Paper: More Details