Target capital structure for managerial decision making: Dynamics and determinants

The study examines the dynamics and determinants of target capital structures among manufacturing firms listed on Nigeria Stock Exchange during period from 2012 to 2021. is motivated by disparity in Speed Adjustment (SOA) leverage, which influenced firm-specific attributes largely dependent macroeconomic indices. Therefore, understanding SOA leverage germane because no two macro-economic environments are same. A longitudinal research design used with a population 75 firms. sample consists 42 firms, drawn using simple random technique. Secondary data sourced annual report. Generalized Method Moments estimation result shows that adjust structure high speed 72%. This confirms application dynamic trade-off theory Nigeria. Profitability, firm size, asset tangibility significant structure, confirming pecking order, agency, static theories, respectively. Tax shelter growth were not determinants. concludes there evidence adjustment optimal Governments policymakers should make effective policies aid speedy access long-term funds these increase their structure.