期刊名称：Arabian Journal of Business and Management Review
电子版ISSN：2223-5833
出版年度：2016
卷号：6
期号：3
出版社：Sohar University, Oman and American University of Kuwait
摘要：Financing decisions are considered to be one of the most crucial areas for finance managerswhile measuring their impact on capital structure and financial performance of the companies. Italways was an area of interest and attracted worldwide researchers to understand the relationshipbetween capital structure and financial performance of the company. Thus, it will be quitecorrect to say that capital structure is the most significant discipline of company’s operations. Itacts as a financial tool which helps to determine ‘how do firms choose their capital structure?’The capital structure of a firm is the composition or structure of its liabilities and therefore itinfluences the behavior of the company as well as its performance results and also affects itsvalue. The present study is an explanatory and non experimental in nature and intended toexamine the nature of capital structure and firm’s performance. The time period of the studycomprises of ten years i.e. 2006-07 to 2014-15 and the data of eight trading companies listed inBombay Stock Exchange (BSE) have been analyzed. The collected data was entered into the Eviewsand multiple regression analysis method was used for analyzing and testing of hypotheses.Results of the study reveal that capital structure influences financial performance of firm. Thefindings show that equity and long term debt have a positive and significant effect, whereas shortterm debt has a negative impact on financial performance. Thus, from the findings and results itcan be concluded that equity and long term debt financing enhances financial performance
