UGC Approved Journal no 63975

ISSN: 2349-5162 | ESTD Year : 2014
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Published in:

Volume 6 Issue 6
June-2019
eISSN: 2349-5162

UGC and ISSN approved 7.95 impact factor UGC Approved Journal no 63975

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Published Paper ID:
JETIR2007281


Registration ID:
235357

Page Number

2192-2202

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Title

Impact of Profitability on Capital Structure: An Empirical Study of BSE-500 Companies

Abstract

Capital structure is the combination of debt capital and equity capital which refers to the permanent financing of the company and Profit is the final outcome of the company which helps to survive and grow for long period. The objective of this paper is to establish a relationship between profitability and capital structure of a firm. Return on equity and return on Assets have been taken as a measure of profitability and Total Debt to Total Assets and Debt-Equity ratios are considered as a measure of Capital Structure of the firm. Descriptive statistics like mean, median, range, standard deviation, Correlation, Regression analysis, Unit Root Test, Multicolinearity test, and testing of hypothesis have been used to arrive at the decision. It is evident from the study that Return on Assets (ROA) is inversely related with Total Debt to Total Assets (TDTA) ratio at less than 1% significant level; Return on Equity (ROE) is inversely related with Debt-Equity ratio (DER) at less than 1% significant level. Growth rate of the firm, size, liquidity are also largely dependent on the profitability of the firm.

Key Words

KEYWORDS: Capital structure, Return on equity, Return on asset, Liquidity, Growth

Cite This Article

"Impact of Profitability on Capital Structure: An Empirical Study of BSE-500 Companies", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.2192-2202, June 2019, Available :http://www.jetir.org/papers/JETIR2007281.pdf

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2349-5162 | Impact Factor 7.95 Calculate by Google Scholar

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 7.95 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Cite This Article

"Impact of Profitability on Capital Structure: An Empirical Study of BSE-500 Companies", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp2192-2202, June 2019, Available at : http://www.jetir.org/papers/JETIR2007281.pdf

Publication Details

Published Paper ID: JETIR2007281
Registration ID: 235357
Published In: Volume 6 | Issue 6 | Year June-2019
DOI (Digital Object Identifier):
Page No: 2192-2202
Country: EAST MIDNAPUR, WEST BENGAL, INDIA .
Area: Commerce
ISSN Number: 2349-5162
Publisher: IJ Publication


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