CAPITAL STRUCTURE AND THE LEVELS OF CASH FLOW AMONG LISTED BANKS IN EMERGING ECONOMIES IN AFRICA

 

Olaoluwa Elsie Umukoro, Olubukola Ranti Uwuigbe, Imoleayo Obigbemi, Uwuigbe Uwalomwa
Covenant University (NIGERIA)
olaoluwaumukoro@gmail.com
bukola.uwuigbe@covenantuniversity.edu.ng
imole.obigbemi@covenantuniversity.edu.ng
uwalomwa.uwuigbe@covenantuniversity.edu.ng

 

Abstract

We explore the effect capital structure has on the levels of cash flow of listed banks in Emerging Economies in Africa. Stakeholders’ theory was adopted in explaining the need for empirically verifying the relationship between capital structure and the operating, financing and investing level of cash flow respectively. Data was collated from financial statements and a multiple regression analysis was conducted, using STATA software. A significant relationship was discovered between both capital structure and the levels of cash flow. The study recommends that capital structure should continue to be employed in Emerging Economies as a corporate strategy. This is because it increases cash flow.

Keywords:  Capital Structure, Cash flow, Emerging Economies.