Effect of Capital Structure on Profitability of Listed Cement Companies in India
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 2
Abstract
This study seeks to extend Mohammad Fawzei Shubita and Jafafer Maroof Alsawalhah (2012) findings regarding the relationship between capital structure and profitability by assessing the effect of capital structure on profitability of cement companies listed on Bombay Stock Exchange during a five-year period (2011-12 to 2015-16). The problem statement to be analyzed in this study is: The study sample consists of 11 companies. Applying descriptive statistics and correlations analysis, there is no significant relationship between cost of capital to firms return and also debt-equity ratio to share price.. Further, it evaluate the impact of Capital structure on profitability of the firm, the study find that there is a significant impact of Capital structure on Firm’s profitability except cost of capital and firm’s return. Yet recommendations based on findings are offered to improve certain factors like the firm must consider using an optimal capital structure and future research should investigate generalizations of the findings beyond the manufacturing sectors.
Authors and Affiliations
Nagesha H G, Dr. T P Renuka Murthy
Keywords
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- EP ID EP409640
- DOI 10.9790/487X-2002050104.
- Views 67
- Downloads 0
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