ABSTRACT

This study investigates the impact of capital structure on the corporate performance of deposit banks in Nigeria, using a sample of six banks listed on the Nigeria Exchange Group (NGX) between 2019 and 2023. An ex-post facto research design was employed, with secondary data sourced from the banks' annual financial reports. The study examined the relationship between long-term debt, short-term debt, total assets, and the total debt-to-total assets ratio and their effects on performance, measured by return on assets (ROA). Panel data analysis and ordinary least squares (OLS) regression were used for the data analysis. The study finds that long-term debt negatively affects corporate performance, while total assets positively influence profitability. Short-term debt shows no significant effect, and the total debt-to-total assets ratio moderately impacts performance. The study recommends that bank executives and regulators prioritize strategic debt management to enhance bank performance and support sustainable growth.