http://www.iaeme.com/IJM/index.asp 1483 editor@iaeme.com International Journal of Management (IJM) Volume 12, Issue 1, January 2021, pp.1483-1491, Article ID: IJM_12_01_130 Available online at http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=12&IType=1 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI: 10.34218/IJM.12.1.2021.130 © IAEME Publication Scopus Indexed IMPACT OF NON-FINANCIAL FIRMS CAPITAL STRUCTURE ON FIRM-VALUE PERFORMANCE IN DEVELOPING AFRICA Ahmed Balarabe Musa School of Business and Economics, Universiti Putra Malaysia, Seri Kembangan, Malaysia B.T Matemilola School of Business and Economics, Universiti Putra Malaysia, Seri Kembangan, Malaysia A.N Bany-Ariffin School of Business and Economics, Universiti Putra Malaysia, Seri Kembangan, Malaysia ABSTRACT The debate on capital structure issues is never ending. The major point of this article is to explore whether capital structure increases firm-value performance of African non- financial firms. The study utilized two step System Generalized Method of Moments to analyze panel data of 406 firms from eight African nations for the period 2010-2018. The study finds evidence that capital structure increases firm-value performance of firms in the eight African nations. The results suggest that firms in Africa prefer debt financing in their capital structure to reap the benefit of interest tax shield which increases firm-value performance. Moreover, shareholders should encourage firm- managers to capitalize on the tax-shield gains of debt to increase the value of their investments. Key words: Capital Structure, Firm-value Performance, Generalized Method of Moments, Developing Africa. Cite this Article: Ahmed Balarabe Musa, B.T Matemilola and A.N Bany-Ariffin, Impact of Non-Financial Firms Capital Structure on Firm-Value Performance in Developing Africa, International Journal of Management (IJM), 12(1), 2021, pp. 1483- 1491. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=12&IType=1 1. INTRODUCTION Optimal capital structure has becomes a great issue to firms that is why capital structure has been a puzzle up till today (Chakrabarti and Chakrabarti, 2019). The significance of capital structure choices as it regards growing a firm’s value cannot be undermined. Capital structure is the combination used by a firm in financing its business ventures. It is very vital for the