THE EFFECT OF CAPITAL STRUCTURE ON CORPORATE PERFORMANCES (A CASE STUDY OF SELECTED COMPANIES IN ONITSHA

This study examined the effect of capital structure on corporate performance with reference to Selected Companies in Onitsha. Questionnaires and interviews will be used to collect information from selected companies in Onitsha, Anambra State. The problem is whether the value of the firm would have been affected by using different types of securities, analysis and observation will be made which gives rise to validity of the conclusion at the end of the analysis. Since there is no project without limitations the researcher will encounter the problem of finance. The money needed for transportation, photocopying of material and questionnaires and also time constraint. The time given to carry out the project is too small, although the research will put all her effort to see that this does not affect the project. The recommendations for the study among others will be that: 1. Companies should increase their efficiency in the use of debt capital. 2. Since the cost of borrowing is so high, companies should focus more attention on how to service fixed charges associated with securities and leasing. Due to the inability of many companies to adopt optimum capital structure, coupled with their inability to source funds through borrowing as a result of increase in the cost of capital, have been identified as the major constraint militating against optimum performance especially on profitability.