Capital Structure and Share Price: Empirical Evidence From Listed Deposit Money Banks (DMB) in Nigeria

Helen Afang Andow, Stephen Yero WETSI

The study employed panel regression method of analysis to evaluate the impact of capital structure on share price of 15 listed Deposit Money Bank (DMB) in Nigeria by extracting data on capital structure for the period 2006 to 2016, a period of ten years. Hausman test was utilized to determine the suitable model between Fixed and Random model, which are the two main methods that are appropriate for analysing panel data. The test confirmed the appropriateness of the Fixed Effect Model. The finding shows that capital structure has a negative and statistically significant impact on share price of 15 listed Deposit Money Bank in Nigeria. The study recommended that listed DMB in Nigeria should make an effort to be rational when raising capital and listed DMB in Nigeria should attempt and make the most of retain profit for its financing.