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ABSTRACT
The study examined the relationship between macroeconomic factors and firm capital structure in Nigeria. The study adopted Ex-Post-facto research design method. Ordinary Least squares estimations were employed in the estimation of the models. The findings revealed that there was a significant relationship between macroeconomic factors (exchange rate, inflation rate, GDP growth rate) and the capital structure of manufacturing firms, exchange rate has a negative significant impact on the capital structure of manufacturing firms, inflation rate has a negative impact on the capital structure of the manufacturing firms, and GDP growth rate has a positive impact on the capital structure of the manufacturing firms in Nigeria. However, the study recommends that manufacturing firms should source for a local sources of raw material to avoid importing almost all the needed raw materials, government should ensure a stable exchange rate system to enable manufacturing firms plan effectively, government should ensure that there is a stable price by using both monetary and fiscal policies. And government should promote adequate infrastructure and business culture in order to boost economic activities.
