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Abstract
This study focuses on capital structure and performance of deposit money banks withspecificreferenceto how debt ratio and equity ratio affect return on equity and net interest margin of banks in Nigeria. Capital structure remains one of the core decision areas in the field of finance, as it determines the existing amount of debt and equity of a bank. It is an important decision that has a close relationship with the value of bank hence its performance. The population of the study is the entire 21 licensed DMBs in Nigeria (CBN, 2018). The sample size of 12 banks was determined using convenience sampling technique for the period 2007- 2018. The study utilizes panel design to analyse the data based on random effect estimation.