The Influence of Capital Structure on Financial Performance: A Statistical Analysis of Robin Corporation Ltd in Zimbabwe’s Beverage Industry
Journal Title: Journal of Accounting, Finance and Auditing Studies - Year 2024, Vol 10, Issue 4
Abstract
This study investigates the relationship between capital structure and financial performance at Robin Corporation Ltd, a leading beverage manufacturer in Zimbabwe. A quantitative research methodology was employed, with data collected from 31 employees through structured questionnaires. The study focuses on external and internal financing sources—debt, equity, retained earnings, and reserves—and their impact on the company’s financial outcomes. The analysis reveals a positive correlation between capital structure and financial performance, suggesting that both debt and equity financing play significant roles in shaping financial results. However, it was also observed that factors such as managerial efficiency, inflation, and broader economic conditions exert substantial influence on performance. While capital structure is a critical determinant, the results indicate that effective management of these other variables is equally essential for optimizing financial outcomes. The findings underscore the importance of strategic capital management in the Zimbabwean beverage sector, emphasizing that an appropriate balance between external and internal financing is pivotal for enhancing financial performance. The study contributes to the broader understanding of capital structure in emerging markets and provides valuable insights for companies seeking to navigate the complexities of financial decision-making in volatile economic environments.
Authors and Affiliations
Gerard Zvikomborero Govere, Ongayi Wadesango
Keywords
Related Articles
- EP ID EP754055
- DOI https://doi.org/10.56578/jafas100405
- Views 29
- Downloads 0
Maltese Stakeholder Perceptions of the Elements and Values in the Cooperative Concept
The exploration of stakeholder perceptions concerning the elements and values underpinning the cooperative concept in Malta forms the core objective of this investigation. Employing semi-structured interviews, primary da...
Industry and Regional Spillover Effects of Penalties for Disclosure Noncompliance among Public Firms
This study investigates the industry-wide and regional spillover effects of penalties for noncompliance with information disclosure regulations, focusing on publicly listed firms in China. The analysis is based on panel...
Enhancing Operational Efficiency and Financial Performance Through Internal Audit: A Case Study of BLESSING Finance
Internal audits serve as critical assurance services that support the enhancement of operational efficiency and financial performance within organizations. This study examines the role of internal auditing in improving t...
Impact of IPO Review Inquiry Intensity on Prospectus Information Disclosure Updates
The prospectus, as the primary vehicle for issuers to disclose information to the public, plays a crucial role in protecting investors’ rights. Review inquiries serve as an important tool to ensure the quality of the pro...
The Impact of Low Distribution Costs and Short Transit Times on Moderating the Correlation Between Digital Wallet Adoption and Impulse Purchases
In the contemporary digital era, individuals are afforded the convenience of instantaneous transactions through electronic wallets (e-wallets) when engaging in online shopping. This study aims to investigate the extent t...