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

This study examined the impact of capital structure on financial performance of listed insurance firms in Nigeria with the moderating role of sustainability reporting and audit quality services as a control variable from 2012 to 2021. The population of this study consist of twenty-one (21) listed insurance firms listed in the Nigeria Exchange Group as at December, 2021. The sample size of the study consists of 20 listed insurance firms within the period of study. The study employed the panel corrected standard errors (PCSE) regression model to analyse the data sourced secondarily. The findings of this study revealed that equity financing is significantly positive relationship with financial performance while debt financing is insignificantly positive on financial performance of listed insurance firms in Nigeria under the direct model. However, the moderated model revealed an insignificant positive correlation between equity financing, debt financing, and financial performance of listed insurance firms in Nigeria. Therefore, the study recommended that insurance firms in Nigeria Insurance firms in Nigeria should increase their level of debt in funding as their operations as well as increase their equity funding in order to increase return on assets.