Subject and

Name of the Author(s) Objectives Locale of the Significant Findings Reference

Study Study

The study found out that capital

Capital The researcher The study is structure ratios such as debt to Lim, E. (2015).
Structure and wants to examine limited to the equity ratio and debt to asset ratio Capital structure
Profitability of Edralin the relationship analysis of the improve the profitability of bank. A and profitability of
Selected Lim between capital relationship significant positive relationship selected universal
Universal structure and between capital between debt to equity, debt to banks in the
Banks in the profitability of the structure and asset ratio and return on equity is Philippines. Journal
Philippines banking industry, profitability of found based on correlation results. of Global
specifically the eleven universal Tax savings from the use of debt Business, 4(1), 24-
universal banks. banks in the contribute to income of banks. The 28. Retrieved from
Philippines. findings validated that universal http://atiftap.org/ind
The researcher banks apply the moderate view and ex.php/e-
wants to find out if static trade-off theory, taking the journals/article/pdf/
debt to equity ratio advantages of debt financing to 18
is significantly increase the firm value and improve
related to return their profitability.
on equity and
whether debt to Overall, the study confirmed that the
asset ratio is decisions on how banks manage
significantly their resources and capital structure
related to return will always be significantly related to
on equity. profitability.
 Subject and
Name of the Author(s) Objectives Locale of the Significant Findings Reference
Study Study

An Empirical Krishna Empirically The study used a The study found a significantly Pandey, K. D., &
Analysis on Dayal examined the moderately negative effect of capital structure Sahu, T. N. (2017).
Capital Pandey effect of capital balanced panel on accounting performance of the An empirical
Structure and & structure (is data from 2009- sampled firms. However, the study analysis on capital
Firm Dr. Tarak represented by 2016 of 91 found a significant and positive structure,
Performance Nath the debt to equity manufacturing impact of almost all forms of ownership and firm
Evidence Sahu ratio) and firms regularly ownership structure on firms’ performance:
from India ownership traded and listed accounting performance. Evidence from
structure in Bombay Stock India. Indian
(represented by Exchange 200 Thus, the study proposed the firms’ Journal of
percentage of indices of India. accounting performance as the Commerce &
domestic function of almost all the variables of Management
promoters’ capital and ownership structure Studies, VIII(2), 63-
ownership, used in the study. 72.doi:10.18843/ijc
percentage of ms/v8i2/09
foreign promoters’ Moreover, the capital structure
ownership and should be highly considered as one
percentage of of the sensitive decision areas and
institutional the magnitude of leverage should be
ownership) on the maintain at a possibly minimum
accounting level i.e. the Indian firms should
performance of mostly rely on owners’ fund i.e.
Indian equity capital than debt.
manufacturing
firms.
 Subject and
Name of the Author(s) Objectives Locale of the Significant Findings Reference
Study Study

This empirical study output revealed

An Empirical Eric Kofi Investigate Fifteen non- that, with the exception of NPM and Boadi, E. K., &
Analysis of Boadi specifically the financial ROA that was significantly and not Li, Y. (2015). An
Leverage and & empirical companies were positively related to total debt, ROE was empirical analysis
all insignificantly related to short term
Financial Yao Li relationships used and their of leverage and
debt and long term debt. Sales growth
Performance between capital financial data were was significantly and positively related financial
of Listed structure and used to compute to ROA, ROE and NPM for all performance of
Non-Financial profitability of non- their profitability measures of debt. Firm size indicated listed non-financial
Firms in financial firms and leverage insignificant and negatively association firms in Ghana.
Ghana listed on Ghana ratios. The data to ROA, ROE and NPM for all International
stock exchange are based on measures of debts. Journal of
from 2004 to secondary data Economics and
2010. It also want obtained from The negative linkage between the Finance, 7(9), 120-
to examine how Ghana Stock profitability ratios and total debt denotes 135.doi:10.5539/ijef
that the firms’ profitability was not
the financing Exchange Fact .v7n9p120
influenced by debt financing This
arrangements are book from 2004 to situation denotes that leverage does not
influenced by key 2010 and the result to profitability and the firm needs
macroeconomic African financial to consider internal finance. This implies
indicators. Portal website. that non-financial firms in Ghana use
less debt and depend more on internal
source of financing.

Furthermore, firm size influences

profitability (measured by return on
assets, return on equity and net profit
margin) negatively. The findings
suggest that growth is crucial in
determining non-financial firms’ profits
in Ghana and when it increases, profit
also increases.
 Subject and
Name of the Author(s) Objectives Locale of the Significant Findings Reference
Study Study

The To examine This paper applies The result illustrates that the capital Dai, T. B. (2017).
Relationship Tran Binh empirical an unbalanced structure of banks in Thailand is The relationship of
of the Capital Dai evidence panel data of statistically adverse significance the capital structure
Structure and regarding the quarterly financial with the financial performance (ROA and financial
Financial relationship information of all and ROE). Banks prioritize their performance:
Performance: between capital listed banks in internal generated funds which are Empirical evidence
Empirical structure and Thailand from their retain earnings first and if this of listed banks in
Evidence of financial 1997 to 2016. source of finance is used up, they Thailand. European
Listed Banks performance will use the debt capital. Thus, this Journal of
in Thailand using the Thai paper suggests that efficient banks Accounting,
listed banks as an use less debt (more equity). Auditing and
experimental Finance
setting. While improving banks’ financial Research, 5(5), 18-
performance, bank managers 28. Retrieved from
should be aware of over utilizing http://www.eajourn
debt because it reduces banks' als.org/wp-
profitability. Moreover, credit risk content/uploads/Th
and liquidity risk should also be e-Relationship-of-
taken consideration. Lastly, the the-Capital-
banks should allocate the funds Structure-and-
appropriately to avoid the shortage Financial-
of funding which may become costly Performance-
to banks in the long run. Empirical-
Evidence-of-Listed-
Banks-in-
Thailand.pdf
 Subject and
Name of the Author(s) Objectives Locale of the Significant Findings Reference
Study Study

Results of the study reveal that

Impact Of Dr. Mohd The study wants capital structure (debt equity ratio Taqi, M., Ajmal, M.,
Capital Taqi, to find out the The time period of and debt to fixed asset ratio) & Pervez, A.
Structure On Dr. Mohd capital structure of the study influences financial performance of (2016). Impact of
Profitability Ajmal selected trading comprises of ten firm. The findings show that equity capital structure on
Of Selected & companies of years i.e. 2006- and long term debt have a positive profitability of
Trading Dr. Asif India. The 2007 to 2014-2015 and significant effect, whereas short selected trading
Companies Pervez researchers also and the data of term debt has a negative impact on companies of
Of India want to examine eight trading financial performance. Thus, from India. Oman
the nature of companies listed the findings and results it can be Chapter of Arabian
relationship in Bombay Stock concluded that equity and long term Journal of Business
between capital Exchange (BSE). debt financing enhances financial and Management
structure and performance. Review, 6(3), 1-16.
profitability and doi:10.12816/0033
the impact of debt Results indicate that there is a 239
equity ratio on strong negative and significant
profitability of relationship between capital
trading firms. structure ratios and performance
measures of trading firms (GPR,
NPR, ROCE, RONW and ROA).

Overall, debt ratio will determine the

financial health of companies. It
helps the investors to identify risk
rate for the companies and a high
debt ratio affect negatively on firm’s
performance and its value.