Title, Author, year
-The impact of capital
structure on Firms
performance in Morocco
-Amraoui Mouna1 , Ye
Jianmu2 , Shinta Amalina
Hazrati Havidz
-10, October 2017
-The impact of capitalstructure choice on firm
performance: empirical
evidence from Egypt
-Ibrahim El-Sayed Ebaid
-5, 2009
Objective
Dependent
Independent
Mohamed saied hamdy 20181464
whereas debt ratio (DR)
return on asset (ROA) and the capital structure
and debt equity ratio
return on equity (ROE) to specifics, such as: debt
(DER) were used as proxy measure firms
ratio , debt equity ratio
to capital structure, size
performance
and control
and industries were used
as control variable, return
on asset (ROA) and return
on equity (ROE) were
used as proxy to firms
performance.
further research could
examine the relationship
between maturity
structure of the firm’s
debt and its decisions and
performance. Finally,
further research could
examine the joint impact
of both capital structure
and ownership structure
on firm’s performance
since a large number of
Egyptian firms are family
firms.
i.e. performance
total assets
Conclusion
This study aims to investigate
the impact of capital
structure on firms’
performance in Morocco, the
data was taken from
Moroccan authority of
capital market official
website and Casablanca
stock exchange official
website, the period of study
is from 2014 to 2016 and the
sample of the study is all
active companies listed on
Casablanca stock exchange
except financial companies.
The study investigates the
impact of capital structure
choice on performance of
listed firms in Egypt as one of
emerging or transition
economies. Based on a
sample of Egyptian listed
firms and using three of
accounting-based measures
of financial performance
(ROA, ROE, and GM)
- The Impact of Capital
Structure on the
Profitability of
Microfinance Institutions
- Afsheen Abrar1,Attiya Y
Javaid2*
- Spring 2016
The Effect of Capital
Structure on Profitability:
Evidence from the United
States
- Amarjit Gill, Nahum
Biger, Neil Mathur
- Dec 2011
- The Effect of Capital
Structure on Profitability
of Energy American Firms
- Mohamed M. Khalifa
Tailab
- December. 2014
-Examine the factors of
sustainability and their
effect on a microfinancing firm’s
profitability.
 Examine the several
indicators given weight
when making decisions
with regard to the type
funding sources
employed.
 Analyze, on a global
scale, as to how the
different combinations of
capital-structure affect a
micro-financing firm’s
profitability
This study examines the
relationship between
capital structure and
profitability of the
American service and
manufacturing firms.
assets (ROA), operationalself-sufficiency (OSS), and
return-on-equity (ROE).
(financial sources), on the
other hand, employs:
deposit-to-asset, netdeposits, and lastly debtto-equity ratio.
The results affirm deposits as
being the cheapest financialsource for a MFI. The results
further denote that highly
levered MFIs enjoy a higher
profitability relative to the
less levered MFIs.
earnings before interest,
tax, and extraordinary
income scaled by total
owners’ equity, denoted
as ROE, as a proxy for the
firm’s profitability.
debt ratios (short-term
debt to total assets, longterm debt to total assets,
and total debt to total
assets).
This study adopted return
on equity (ROE) and
return on assets (ROA) as
dependent variables for
measuring firms’ financial
performance, while a set
of independent variables
return on assets (ROA)
short debt, long debt,
total debt, debt to equity
and firm’s size.
Based on the findings of this
paper, it can be concluded
that the capital structure of
the firm impacts profitability.
It is because interest on debt
is tax deductable in United
States. The results suggest
that profitable firms depend
more on debt as their main
financing option.
Capital structure is a very
sensitive subject in the field
of financial management
because it partly affects its
profitability. Thus, the
intended aim of conducting
this study was to investigate
with difference expected
signs were used to
measure the effect on
firms’ profitability.
The Impact of Capital
Structure on Firm’s
Profitability: A Case of
Abdelrahman Mohamed Talaat
in cement industry twenty ratios of return on assets
Capital Structure
two cement
and return on equity.
manufacturing companies
the impact of capital
structure (short-term- debt,
long- term- debt, total debt,
debt equity ratio, and firm
size) on financial
performance as measured by
return on equity (ROE) and
return on assets (ROA) for a
period of nine years starting
in 2005.
On the basis of results,
recommended that cement
firms have needs use a
Cement Industry of
Pakistan
- Muhammad Ashraf,
Ahsan Ameen,Kiran
Shahzadi
- April 2017
listed on Karachi Stock
Exchange (KSE), 18 firms
are select, while four
companies excluded due
to unavailability of data.
The ten year data from
2006 - 2015 taken from
the annual reports of
cement manufacturing
companies operating in
Pakistan. The balance
panel data has been used
to obtain results of
descriptive, correlation
and panel least square by
using E-Views 9.
The Effect of Capital
Structure on Profitability
of Manufacturing
Company
- Indah Martati, Suminto,
Dyah Kusrihandayani
- 19 March 2021
The populations in this
study were manufacture
enterprises that classified
on LQ45 listed on the
Indonesia Stock Exchange
during the period 20122016 amounted to 25
companies.
Return On Equity (ROE)
DR and DER
suitable portion of debt and
equity to funding resources,
which have low cost of
capital and more portion of
debt use through short term
debt while less portion from
long term debt. Because long
term debt ratio (LTDR) has
negative, significant
relationship with profitability
determinants return on asset
(ROA) and return on equity
(ROE). The short term debt
ratio (STDR) has positive and
significant relationship with
return on equity (ROA) and
return on asset (ROE).
Based on the results of the
analysis, this study can be
summarized : 1) Testing of
the first hypothesis (H1) with
exogenous variables Debt
Ratio and Debt Equity Ratio
simultaneously had positive
significant effect on the
variable Return On Assets
(ROA) in manufacturing
companies active on LQ45
Indonesia Stock Exchange
Period 2012-2016. 2). Testing
of second hypothesis (H2)
with exogenous variables
Debt Ratio and Debt Equity
Ratio simultaneously have a
significant effect to Return
On Equity (ROE) variable at
manufacturing company
active on LQ45 Indonesia
Stock Exchange 2012-2016
period. 3).Testing of the third
hypothesis (H3) with
exogenous variables Debt
Ratio and Debt Equity Ratio
partially significant effect on
Return On Assets (ROA)
variable at manufacturing
company active on LQ45
Indonesia Stock Exchange
2012-2016 period not
proven. 4).Testing of the
fourth hypothesis (H4) with
the exogenous variables Debt
Ratio and Debt Equity Ratio
to Return on Equity (ROE),
the result of research
showed that Debt Ratio (DR)
was partially negative
significant effect on Return
on Equity (ROE), while Debt
to Equity Ratio (DER) partially
had positive significant effect
on Return on Equity (ROE).
Effect of Capital Structure
on Firm Profitability (An
Empirical Evidence from
London, UK)
Assad Naim Nasimi
2016
• To identify the nature of
relationship between capital
structure and firm
performance.
• To explore the impact of
capital structure on firm
performance.
(return on equity, return on
assets and return on
invested capital)
(debt to equity and interest
coverage)
The main objective of the study
is to empirically investigate the
effect of capital structure on
firm performance of 30
companies listed on FTSE-100,
London Stock Exchange, United
Kingdom. For the purpose of
exploring the effect, the study
consists of three models
including two independent
variables and three dependents.
The Relationship
between Capital
Structure and
Profitability
. Mohammad Fawzi
Shubita, . Jaafer Maroof
alsawalhah
EFFECT OF CAPITAL
STRUCTURE ON
PROFITABILITY: AN
EMPIRICAL ANALYSIS
OF LISTED FIRMS IN
IRAQ
Mustafa Hassan
Mohammad Adam
2015
This research provides
international evidence
on capital structure
alternative by using
Jordanian data. The way
in which capital
structure is managed
will have a significant
impact on the
profitability of firms.
This study provides an
evidence on capital structure
alternative by using an Iraqi
data. Where the way in
which capital structure is
managed by firms will have a
significant effect on the
profitability of companies
Return on Equity (ROEit)
long-term debts to total
assets
the debt ratio
PM, ROE, and ROA
This study results reveal
significantly negative
relation between debt
and profitability. These
findings imply that an
increase in debt position
is associated with a
decrease in profitability;
thus, the higher the debt,
the lower the
profitability of the firm.
The study findings suggest that
capital structure positively
influence, in a significant way, on
the profitability of listed firms in
Iraq. Furthermore, profitability, and
assets (firm-size) have been found
to be negatively influencing the
capital
The Effects of Capital
Structure on Firm’s
Profitability: Evidence
from Kenya’s Banking
Sector
-Charles Yegon1 * Joseph
Cheruiyot2 Dr. J. Sang3
Dr. P.K. Cheruiyot4
-9, 2014
The general objective of
this study was to focus on
examining the link
between capital structure
and profitability of
banking institutions listed
at the Nairobi Securities
Exchange.
The specific objectives of
this study were to:
i. Determine effect of
equity financing on
profitability of banking
institutions listed on the
Nairobi Securities
Exchange.
ii. Determine the effect of
debt financing on the
Asmaa Abdo Alsharabi
The return on equity
leverage ratios and
control variables
The capital structure decision
is crucial for any business
organization. The decision is
important because of the
need to maximize returns to
various organizational
constituencies, and also
because of the impact such a
decision has an
organization’s ability to deal
with its competitive
environment.
THE EFFECT OF CAPITAL
STRUCTURE ON
PROFITABILITY OF
FINANCIAL FIRMS LISTED
AT NAIROBI STOCK
EXCHANGE
-SAMUEL KIPKORIR
KOECH
-NOVEMBER 2013
Effect of Capital Structure
on Firms’ Profitability: An
Empirical Evidence from
Pakistan Stock Exchange
(PSX)
profitability of banking
institutions quoted on the
Nairobi Securities
Exchange.
To investigate the effect
of capital structure on
financial performance of
financial firms listed at
Nairobi Stock Exchange
This study will analyze the
effect of capital structure
on firm profitability. In
general, it will cover each
and every aspect of the
subject but specifically it
is related to effect capital
structure of firms listed at
PSX. It is of very
importance to know what
association that exists
between capital structure
and firm profitability since
the survivability of firms
depend on returns. The
financial performance
capital structure
leverage
tangibility, profitability,
firm size and growth
The study has examined the
relationship between capital
structure and profitability of
listed financial firms in Kenya
in period 2008 to 2012. The
main aim being to provide
empirical insights on the
financing behaviour of listed
banks in the Banking sector
in Nairobi stock exchange.
The study established a
significant negative
relationship between capital
structure and financial
performance.
we find that debt to equity
ratio has an insignificant
positive impact on the net
profit margin. However, debt
ratio showed a significant
negative impact on net profit
margin. This can be
explained that the firms with
higher debt ratio are more
liable and to fulfill their
obligations these firms need
to pay large portion of their
income, consequently the
net profit margin of the firms
reduces. This is how debt to
Impact Of Capital
Structure On Profitability
In The Manufacturing
And Non-Manufacturing
Industries Of Pakistan
-1Hafeez Ullah, 1Aun
Abbas, 2Nadeem Iqbal
-2015-09-11
The Effect of Capital
Structure on Profitability:
An Empirical Panel Data
Study
-Narinder Pal Singh1,
Mahima Bagga2
-2019
finding of this research
will be helpful to the
investors, owner,
managers and all
stakeholders to make
sound decision on the
structure of firms’ capital.
Furthermore, the findings
of the study also help
government in collecting
taxes and enhancing a
specific sector.
The major statement of
objective to maintains on
the profitability in both
industries. So, if overcome
of such problems such as
loss, risk, liabilities and
other factors that affect
the profitability.
To investigate the
relationship between
capital structure and
profitability of listed firms
on the Ghana Stock
Exchange (GSE)
asset and net profit margin
are negatively related.
Profitability ROE, ROA,
PER, EPS
Capital Structure Debt
Equity
ROA and ROE
short term debt (STD)
,long term debt
(LTD),total debt (TD)
This paper has checked the
impact of change in capital
structure on the profitability.
The ruling specifies that
capital structure of sample of
manufacturing and non
manufacturing industries
change with the change of
capital structure it effect the
profitability significance or
insignificance.
The results of this study are
useful for investors, lenders,
as well as corporate houses.
It will also help the financial
managers to identify their
optimal capital structure in
order to maximize the value
of the firm. The future study
can focus on a larger group
of companies or it can be
industry-specific.
Impact of Capital
Structure on Firm's
Profitability: A Study of
selected listed Cement
Companies in India
-Mohinder Singh,
Bhushan Singh
-January 2016
The objective of this study
is to investigate the
impact of capital structure
on firm's profitability
through the selected
cement companies in
India. The study is based
on secondary data i.e. five
years financial statements
collected from PROWESS
data base of CMIE. Based
on correlation coefficient,
study found a significant
negative relationship
Dena Adel Mohammed
The growth of a firm
efficiency of
management,
Cement companies have
scope to increase debt level
in their exiting capital
structure so that, companies
can enjoy the benefits of
leverage.
Capital Structure and
Firm’s Performance of
Jordanian Manufacturing
Sector
-Zeyad Saleem Ramadan1
& Imad Zeyad Ramadan
-May 25, 2015
between debt and
profitability meaning that
companies with higher
proportion of debt tend to
have low profitability.
the aimed to identify the
effect of capital structure
on the performance of the
industrial Jordanian
Companies listed on
Amman Stock Exchange
during the period
between: 2005 to 2013
unbalanced cross
sectional pooled Ordinary
Least Square (OLS)
regression model was
used.
: Firms’ Performance
Capital Structure they
used ROA
This study, The results of this
study showed that there was
statistically significant
inverse effect of capital
structure, expressed by longterm debt to capital ratio,
total debt to capital ratio and
total debt to total assets
ratio, on the performance of
the Jordanian industrial
companies listed at ASE
expressed by Return on asset
ratio (ROA), which means
that the most profitable
companies rely less on
borrowing to finance their
cash needs, and this result is
supported by Pecking-order
theory which states that the
relationship between
borrowing and profitability of
the company is an inverse
relationship so that the most
profitable companies are less
dependent on profits to
finance their needs.whereas
this study was applied on all
Jordanian industrial
companies listed at ASE and
The effect of capital
structure on profitability:
an empirical analysis of
listed firms in Ghana
-Joshua Abor
-. 5, 2005
This study paper seeks to
investigate the
relationship between
capital structure and
profitability of listed firms
on the Ghana Stock
Exchange (GSE) during a
five‐year period. sampled
all firms that have been
listed on the GSE over a
five-year period (19982002). Twenty-two firms
qualified to be included in
the study sample.
Variables used for the
analysis include
profitability and leverage
ratios. Profitability is
operationalized using a
commonly used
accounting-based
measure: the ratio of
earnings before interest
and taxes (EBIT) to equity.
The leverage ratios used
include:
. short-term debt to the
total capital;
. long-term debt to total
capital; and
. total debt to total
capital.
the descriptive statistics
debt ratio: accountingbased measure: the ratio
of earnings before
interest and taxes (EBIT)
to equity. The leverage
ratios used include:
. short-term debt to the
total capital;
. long-term debt to total
capital; and
. total debt to total
capital.
which amount 72 companies
as in December, 2013.
The capital structure decision
is crucial for any business
organization. The decision is
important because of the
need to maximize returns to
various organizational
constituencies, and also
because of the impact such a
decision has on an
organization’s ability to deal
with its competitive
environment. This present
study evaluated the
relationship between capital
structure and profitability of
listed firms on the GSE
during a five-year period
(1998-2002).
EFFECT OF PROFITABILITY
& FINANCIAL LEVERAGE
ON CAPITAL STRUCTURE:
A CASE OF PAKISTAN’S
AUTOMOBILE INDUSTRY
- Mahira Rafique
- June, 2011
This study uses panel
regression analysis. Panel
data analysis facilitates
analysis of cross-sectional
and time series data. We
use the pooled regression
type of panel data
analysis. The pooled
regression, also called the
Constant Coefficients
model, is one where both
intercepts and slopes are
assumed constant. The
cross section company
data and time
debt to equity ratio as a
proxy for capital structure
profitability (EBT/TA) and
financial leverage
(EBT/EBIT) of the firm.
The Effect of Capital
Structure and Firm Size
on Firm Value Through
Profitability as
Intervening Variable
- Khairina Natsir1* ,
Yusbardini Yusbardini2
-2019
In this study, the effect of
capital structure and firm
size on firm value was
mediated by profitability.
The path coefficients for
both models are displayed
the value of the firm
measured by PBV
the capital structure
measured by DER
This paper attempts to
answer the question that
how profitability and capital
structure impact capital
structure of listed Pakistani
firms belonging to the
automobile industry..This
section presents the
descriptive statistics, the
results of regression analysis
and correlation coefficient.
The interpretation of the
empirical findings is also
reported in this section.
Finally, important
conclusions about the results
of the study have been
drawn.
After conducting the
research procedures starting
from selecting the sample,
selecting the model that best
suits the data in the sample,
as well as conducting a series
of statistical tests in
accordance with the selected
model and research method,
the conclusions of this study
can be obtained as follows:
1. Firm size has positive and
significant effect on
profitability.
2. Capital structure has
negative and significant
effect on profitability.
3. Firm size has positive and
significant effect on firm
value.
4. The capital structure has
positive and significant effect
on firm value.
5. Profitability has positive
and significant effect on firm
value.
6. Profitability can
significantly mediate the
effect of firm size on firm
value.
7. Profitability can
significantly mediate the
effect of capital structure on
firm value.
Ali barakat fathy
AUTHOR
YEAR
TITLE
OBJECTIVE
DEP. VAIRABLE
MEASURED BY
The Impact of
Capital
Structure on
the Profitability
of Publicly
Traded
Manufacturing
Firms in
Bangladesh
to show the
impact of
capital
structure on
profitability of
publicly traded
manufacturing
firms in
Bangladesh
To fulfill the
main objective
we pursue the
following
specific
objectives: • To
identify the
impact of
capital
structure on
Return on Asset
(ROA). • To
identify the
impact of
capital
structure on
Return on
Equity (ROE). •
To identify the
impact of
Return on
Assets Net
Income /Total
Assets
Return on
Equity Net
Income /Equity
Earnings per
Share Net
Income/No. of
Shares
Outstanding
Md. Ataur
Rahman1 , Md.
Sadrul Islam
Sarker2 & Md.
Joyen Uddin3
: January 10,
2019
INDEP. VARIABL
CONTROL
VARIABL
MEASURED BY
Debt Ratio
Total
Debt/Total
Assets
Equity Ratio
Total
Equity/Total
Assets
Debt to Equity
Ratio Total
Debt/Total
Equity
CONCLUSION
we can say that
there is no universal
theory of the debtequity choice.
Different views
have been
published regarding
the financing choice
The present study
will also investigate
the effect of capital
structure on
profitability of listed
firms in Dhaka Stock
Exchange in
Bangladesh.
capital
structure on
Earning per
Share (EPS).
The Effect of
Capital
Structure on
Profitability:
Evidence from
the United
States Amarjit
Gill TUI
University
Nahum Biger
Academic
Center Carmel,
Israel and
CNPC, France
Neil Mathur
Simon Fraser
University,
Canada
Dec 2011
The capital
structure
decision is
important
because of the
need to
maximize
returns of the
firms, and
because of the
impact, such a
decision has on
the firm’s
ability to deal
with its
competitive
environment
A number of
theories have
been advanced
in explaining
the capital
structure of
firms. Despite
the theoretical
appeal of
capital
structure,
researchers in
financial
e, we used
earnings before
interest, tax,
and
extraordinary
income scaled
by total
owners’ equity,
denoted as
ROE, as a proxy
for the firm’s
profitability.
debt ratios
(short-term
debt to total
assets, longterm debt to
total assets,
and total debt
to total assets)
y they issue equity
to cover any
remaining capital
requirements. The
order of
preferences reflects
the relative costs of
various financing
options
management
have not been
able to find a
model for an
optimal capital
structure
Impact of
Capital
Structure on
Firm's
Profitability
with Reference
to Companies
Listed on MSM
(Muscat
Securities
Market)
Jalan Kenanga
Bandar Sri
Damansara
: 21 Jun 2015
To analyze the
NPR
relationship
ROA
between capital ROE
structure and
profitability
ratios. To
identify the
significance of
the impact of
capital
structure of
profitability of
public listed
companies in
Sultanate of
Oman. To
propose firms a
way to raise
profitability by
choosing a
better capital
structure
Debt to Equity
Ratio
The impact of
indirect bankruptcy
costs vary from one
company to another
as for some
companies, human
resources may be
more important
while in other,
suppliers may be
more significant.
One should
consider that
indirect bankruptcy
costs are also a
form of transactions
costs.
Impact of
Capital
Structure on
Banking
Profitability
Muhammad
Raghib Zafar* ,
Farrukh
Zeeshan**, Rais
Ahmed
March 2016
The purpose of
this study is to
acknowledge
whether capital
structure is an
appropriate
policy to bring
in the financial
sector
especially in the
banking sector
of Pakistan.
Earnings per
Share (EPS),
Return on Asset
(ROA), Return
on Equity
(ROE),
Total Liability to
total Asset
(TDTA), Total
Liability to total
Equity (TDTQ),
investigate the
association
between capital
structure and firm
performance. The
investigation
specifies that the
capital structure is
considerably and
positively
associated with
firm’s performance
which is deliberate
by earning per
share
Effect of Capital
Structure on
Firm
Profitability (An
Empirical
Evidence from
London, UK)
Effect of Capital
Stru...
Assad Naim
Nasimi
Year 2016
The study is
intended to
undertake the
following
objectives: • To
identify the
nature of
relationship
between capital
structure and
firm
performance. •
To explore the
impact of
capital
structure on
firm
performance
return on
equity, return
on assets and
return on
invested
capital)
debt to equity
and interest
coverage
The capital
structure decision is
an important
decision as it
influences the
investors’ return on
their investment. It
is therefore
obligatory on the
management of
company to make
appropriate capital
structure so to
maintain the
interest of its
investors.