Department of Management, Christ University, Pune, India
Research Article
Impact of Capital Structure on the Financial Performance
of Firms: A Study of BSE Listed Selected Pharmaceutical
Companies
Author(s): Jibin J Varghese* and Sanjay Sahai
The Capital Structure of a firm affects debt and equity. In this study, an investigation has been made to analyze the impact of capital structure on the selected pharmaceutical
company’s financial performance over a period from 2016 to 2020 of 20 BSE listed Pharmaceutical companies are taken based on market capitalization, and the average of all
the ratios are calculated and considered. To analyze the considered sample of data, correlation and multiple regression analysis is being used. The findings of the study shows
that there is a negative relationship between Capital structures such as Debt Equity Ratio, Debt Ratio, and Profitability Ratios (ROE, ROA, Net Profit Margin) and also a positive
relationship between Equity Ratio (Capital structure) and Profitability Ratios (ROE, ROA, Net Profit Margin). Moreover, the capital structures are not statistically influenced .. Read More»
DOI:
10.37421/2151-6219.2021.s2.001
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