CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF LISTED INSURANCE FIRMS IN NIGERIA: MODERATING ROLE OF SUSTAINABILITY REPORTING

Abstract

The main aim of this research is to examine the impact of capital structure on financial performance of listed insurance firms in Nigeria with the moderating role of sustainability reporting. A correlational and ex-post factor research designs were adopted for the study. The population of this study is 26 listed insurance firms and the sample size of the study consists of 25 listed insurance firms on the floor of Nigeria Exchange Group for the period 2013 to 2022. Panel corrected standard errors (PCSE) regression model was employed to analyze the data of the study with the aid of diagnostic tests. The findings of this study revealed that equity financing ratio and debt financing ratio are positive and significant to the financial performance of insurance firms in Nigeria. On the other hand, the moderated model documented an insignificant correlation between capital structure and financial performance of listed insurance firms in Nigeria. This study recommends that insurance firms in Nigeria should come up with effective policy towards encouraging equity and debt financing in their entities by effective supervision so as to enhance the overall financial performance as well as safeguarding shareholder’s interest.