CAPITAL STRUCTURE AND PERFORMANCE OF CONSUMER GOODS SECTOR IN NIGERIA EXCHANGE LIMITED: ARTIFICIAL INTELLIGENCE APPROACH

Abstract

A well-defined capital structure is crucial for the long-term success of any organization. It ensures financial stability and facilitates sustainable growth. Capital structure refers to the mix of debt and equity financing used by a company to fund its operations and investments. Scholars and financial professionals have been enthralled with the complex relationship that exists between capital structure and firm performance for many years. This research explores this complex relationship by predicting how capital structure decisions will affect the performance of consumer goods companies listed on the NXG. It does this by using the potent tool of artificial neural networks (ANNs). Money structure is thus defined as the process of managing money from various sources to ensure that the organization has the long-term funding that it needs. The management of the various components is referred to as the "structure." The business will require a combination of equity share capital, preference share capital, long-term loans, retained earnings, debentures, and other long-term funding sources to raise the total amount of capital required to fund its operations. The study utilized a random sampling technique, based on an examination of the capital structure found in the annual reports and accounts of fifteen well-regarded consumer-owned businesses from various economic sectors that were listed on the Nigeria Exchange Group market.