International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 2 (March-April 2025) Submit your research before last 3 days of April to publish your research paper in the issue of March-April.

Impact of Capital Structure on Financial Performance: Evidence from NSE Automobile Companies

Author(s) Chhaya Thakaji Lande, Virendra V Tatake
Country India
Abstract In this study, an effort has been made to determine the effect of capital structure on a firm's profitability. Five Automobile companies are utilized as a sample in this study. Twelve years are used as the study's reference period. This study is based on the secondary data which has been collected through the financial statements of the companies & different websites. The researchers used the multiple regression model using R programming to estimate the relationship between the independent variable (DAR, DER, ICR) and the measures of the dependent variable Return on Net Worth (RONW). According to the study's findings, capital structure does have a statistically significant effect on a company's profitability. Out of Five companies the Two Companies show the significant effect of Capital structure on profitability. In case of other three companies there was lack of evidence to conclude anything about the relation between capital structure and profitability as these three companies are almost debt free which resulted into no variation in debt equity ratio over the research period.
Keywords Capital Structure, Profitability, Debt Equity Ratio, Interest Coverage Ratio, Debt to Assets Ratio, Return on Net worth, Multiple Regression Analysis
Field Sociology > Administration / Law / Management
Published In Volume 7, Issue 2, March-April 2025
Published On 2025-03-03
DOI https://doi.org/10.36948/ijfmr.2025.v07i02.37977
Short DOI https://doi.org/g86wpt

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