The Impact of Financial structure of the Financial performance of Cameroon companies : Case study: Cosmos Educational Press Ltd.
Alfred, Tandungang (2020)
Alfred, Tandungang
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020101021234
https://urn.fi/URN:NBN:fi:amk-2020101021234
Tiivistelmä
Most companies play a major role in many economies and Cameroon is not an exception. Understanding the financial structure of companies and that of cosmos Educational Press (Ltd) is important issue in this study since an optimal financial structure is needed for the performance and sustainability of the company. The company’s financial structure is a mix of debt and equity which a firm deems appropriate to enhance its operation. Therefore, the financial structure is deems to have an impact on the firm’s financial performance against the position held by Modigliani and Miller in their seminal work of 1958 arguing for financial structure irrelevance in investment decisions.
The aim of this study was to determine the impact of financial structure on financial performance of Cameroon companies taking Cosmos Educational Press Ltd as a case study. This study presents a general introduction; the Determinants of Financial structure, by treating the different financial theories and other determinants of the financial structure and the different sources of Finance available to the entrepreneur. The problem statement that gave room for the writer to choose the topic for reseach, reseach questeions and hypothesis formulated I Equally saw some theoritical phramwork patenning to the topic at the level of chapter two such as the Position of Neutrality Theory of Modigliani and Miller (1958. p271-278 and the Pecking Order Theory.
The researcher obtained primary data through the help of questionnaires not leaving out secondary sources from libraries and internet. He adopted a deductive approach in which the questionnaires were used as a tool for data collection meanwhile for the analysis modelheusedthe Pearson correlation coefficient and the linear regressionanalysis with the help ofthe ordinary least squares method(OLS). Results of the correlation and regression analysis show that there is a positive relationship between the financial structure and financial performance of companies;as all the variables exert a positive correlation with financial performance.
The aim of this study was to determine the impact of financial structure on financial performance of Cameroon companies taking Cosmos Educational Press Ltd as a case study. This study presents a general introduction; the Determinants of Financial structure, by treating the different financial theories and other determinants of the financial structure and the different sources of Finance available to the entrepreneur. The problem statement that gave room for the writer to choose the topic for reseach, reseach questeions and hypothesis formulated I Equally saw some theoritical phramwork patenning to the topic at the level of chapter two such as the Position of Neutrality Theory of Modigliani and Miller (1958. p271-278 and the Pecking Order Theory.
The researcher obtained primary data through the help of questionnaires not leaving out secondary sources from libraries and internet. He adopted a deductive approach in which the questionnaires were used as a tool for data collection meanwhile for the analysis modelheusedthe Pearson correlation coefficient and the linear regressionanalysis with the help ofthe ordinary least squares method(OLS). Results of the correlation and regression analysis show that there is a positive relationship between the financial structure and financial performance of companies;as all the variables exert a positive correlation with financial performance.