Do Liquidity and Capital Structure Predict Firms’ Financial Sustainability? A Panel Data Analysis on Quoted Non-Financial Establishments in Ghana

This study examined the connection between liquidity, capital structure, and financial sustainability of 28 quoted non-financial establishments in Ghana. Panel data for period from 2008 to 2019 was used analysis. In study, liquidity proxied by current ratio, while debt ratio as a surrogate structure. Additionally, return on equity (ROE) employed measure sustainability. indicator because its flexibility it can be applied any line business or product. From results, studied panel cross-sectionally independent. Furthermore, series were first differenced stationary cointegrated long-run. The elasticities predictors determined through generalized method moments (GMM) estimator, improved entities’ addition, structure surrogated promoted establishments. Moreover, interaction advanced corporates’ Size, growth, operational efficiency significantly positive determinants firms, but asset tangibility had trivial effect On causal relations among variables, there bilateral amidst equity; cash flow size equity. single-headed causality moving growth uncovered. Finally, no liaison Based findings, recommended, amongst other suggestions, that an optimal level is capable supplying firms with sufficient liquid resources should maintained. use more internal funds back their activities choice safer than alternatives. corporates also prefer option has associated costs could adversely impact