Quest Journals Journal of Research in Business and Management Volume 9 ~ Issue 1 (2021) pp: 40-51 ISSN(Online):2347-3002 www.questjournals.org *Corresponding Author: Temuhale, Julius 40 | Page Asset Structure, Capital Structure and Performance of Quoted Industrial Goods Firms in Nigeria 1 Temuhale, Julius, 2 Ighoroje, Ese James 1 Department of Banking & Finance, Faculty of Management Sciences, Chukwuemeka Odumegwu Ojukwu University, (formerly Anambra State University) Igbariam Anambra State, Nigeria 2 Department of Banking and Finance, School of Business Studies,Delta State Polytechnic, Ozoro. Corresponding Author: Temuhale, Julius ABSTRACT This study examined the effect of asset structure and capital structure on the performance of quoted industrial goods firms in Nigeria within 2011-2019. The study was structured into two models with property, plant, and equipment (PPE), other fixed assets (OFA), and current assets (CAS) as explanatory variables for the asset structure model; long term debt to total equity (LTDTEQ), long term debt to total asset (LTDTAS), long term debt to long term capital (lTDTLC) as explanatory variables for the capital structure model while performance was represented in each model by return on asset (ROA). Data were sourced from the companies’ annual statements of financial position and statements of profit and loss. The study employed descriptive statistics, correlational and panel data as methods of data analysis. Findings showed that while all the asset structure variables had a positive but insignificant effect, capital structure variables viz; ratio of long term debt to total equity, ratio of long term debt to total asset each had positive and significant effect and ratio of long term debt to total long term capital had an inverse and significant effect on return on assets of industrial goods firms in Nigeria. The study therefore concluded that while asset structure does not meaningfully affect the performance of industrial goods firms, capital structure has a positive effect. The study encouraged the firms to consider acquiring more long term debts to finance their operations and avoid investing too much on fixed assets. KEYWORDS: Asset structure, Total Asset, Capital structure, Total equity, Return on Asset Received 12 Jan, 2021; Revised: 25 Jan, 2021; Accepted 27 Jan, 2021 © The author(s) 2021. Published with open access at www.questjournals.org I. INTRODUCTION As a going concern with the desire to continue running sustainably, every firm strives to meet up with the general short term objective of profit maximization, and the long term objective of maximizing the wealth of the share holders at the minimal cost possible. To achieve these objectives, asset structure and capital structure of the firm are two factors that have gained prominence in corporate finance literature and therefore, have been th subjects of discussion in this study. According to [1] asset structure refers to all resources and assets owned by the company which are used in its operations and are expected to provide future benefits. Also [2] and [3] view asset structure from a similar perspective. They describe asset structure as components of fixed assets consisting of Property, Plant and Equipment; intangible assets; long term investments and funds; as well as all current assets including cash in hand and in the bank. Studies have shown that the type of assets acquired by a firm in terms of long term fix assets (property, plant, and equipment) short term fix assets, and current assets has ramifications as a firm pursues its short term and long term objectives afore stated. For instance [1]; [4] showed that asset structure has a positive and significant influence to earnings. Meanwhile ZhengSheng and NuoZhi in [4] are of the opinion that the research of assets structure is of more practical value and universal relevance than capital structure since they are the main source of corporate value creation and with risk avoided. In this regard, the asset structure of a firm has to be designed with close attention, and with the attainment of the main objective of the firm at the centre. This notwithstanding, every business whether a start-up or an existing one employs and uses capital. The capital is usually split into long-term capital and short term also called working capital. This leads us to introduce the other factor that firm performance has been demonstrated by extant studies to hinge on. These studies contend