Impact of Capital Structure on Profitability of Selected Trading Companies of India

Taqi, Mohd; Ajmal, Mohd; Pervez, Asif

doi:10.12816/0033239

Cited by 6 publications

(6 citation statements)

References 4 publications

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“…While this relationship, on the one hand, is an index of the financial strength of the companies considered, on the other it implies the need to improve operational management, which, in optimal conditions, should represent the primary source of profitability. This finding is in line with the study of Indian trading companies conducted by Taqi et al (2016), who recommend that the analyzed companies also focus on the core business to increase their operating revenues. Similarly to this research, from that study it emerged that in the companies observed most of the revenues derive from non-operating activities that strengthen the net profit as compared to gross profit.…”

Section: Answers To Research Questionssupporting

confidence: 90%

Determinants of Capital Structure of Italian Selected Listed Companies

2022

JAF

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The study aims to identify the main determinants of the capital structure of Italian listed companies and is based on the assumption that profitability is the fundamental variable. For this purpose, a sample was selected consisting of all the companies that had published their 2021 financial statements at the date of the research. A linear regression model was used for the analysis of the relationships, in which the operating income to total assets and the financial result to total assets were considered as independent variables, while the equity ratio and the debt ratio were used as dependent variables The results obtained show that financial profitability contributes more than the operating one to the equilibrium of the capital structure.

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Section: Answers To Research Questionssupporting

confidence: 90%

Determinants of Capital Structure of Italian Selected Listed Companies

2022

JAF

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“…Research shows that an optimal debt-equity ratio can increase overall firm value and reduce the weighted average cost of capital [32]. In addition, SME analyses highlight the importance of a dynamic optimal equity structure in improving performance and effectively managing risk [33]. By strategically adjusting the mix of debt and equity, companies can improve their financial health, attract investment, and navigate growth trajectories more efficiently.…”

Section: Role Of Capital Structurementioning

confidence: 99%

The Effect of Green Infrastructure Investment, Capital Structure, and Operational Efficiency on Financial Performance of Companies in Central Java

Judijanto,

Hendra,

Utami

et al. 2024

WSIS

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This study investigates the influence of green infrastructure investment, capital structure, and operational efficiency on the financial performance of companies operating in Central Java. A quantitative research approach was employed, utilizing survey data collected from 173 companies across various industries. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), with hypothesis testing conducted to assess the significance of the relationships between the variables. The results indicate significant positive associations between green infrastructure investment, capital structure, operational efficiency, and financial performance. Specifically, companies that prioritize sustainability initiatives, maintain optimal capital structures, and enhance operational efficiency tend to achieve superior financial performance outcomes. These findings highlight the multidimensional nature of value creation within organizations and underscore the importance of integrating environmental and operational considerations into strategic decision-making processes. The implications of the study extend to policymakers, business leaders, and stakeholders seeking to enhance the financial sustainability and resilience of companies in Central Java.

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“…The greater the funds entrusted by the public to the bank, the greater the ratio of debt to capital itself. The Debt to Equity (DER) ratio reflects the company's ability to fulfill all its obligations demonstrated by the ability to pay debts using its own capital (Hirdinis, 2019;Taqi et al, 2016).…”

Section: A Bank Is Anmentioning

confidence: 99%

Moderation of profitability against determinants company value

Kadang,

Nurdin,

Kasim

et al. 2023

MABIS

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Banks in carrying out the intermediation function require additional capital. Therefore, part of the bank's ownership is sold to the public in the form of shares and debt securities. Firm value is one of the indicators for investors in assessing the performance of a company. The aims of this study are: 1) To determine the factors that influence the value of Indonesian banking companies. These factors are capital structure, efficiency and size of the bank. 2) To find out that profitability moderates the value of Indonesian banking companies. This research uses quantitative verification research. The research analysis technique with moderate variables uses the Moderated Regression Analysis (MRA) model. Using secondary data from the financial statements of each bank. The financial reports are downloaded through the Indonesia Stock Exchange (IDX) website. Processing data using the e-Views 11 application. The results of this study show that the capital structure and the size of the bank have a significant positive impact on corporate value. If a bank is inefficient, it will not have a significant impact on corporate value. Profitability as a mitigation variable cannot amplify the impact of capital structure, efficiency, or bank size on corporate value.

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Impact of Capital Structure on Profitability of Selected Trading Companies of India

Cited by 6 publications

References 4 publications

Determinants of Capital Structure of Italian Selected Listed Companies

Determinants of Capital Structure of Italian Selected Listed Companies

The Effect of Green Infrastructure Investment, Capital Structure, and Operational Efficiency on Financial Performance of Companies in Central Java

Moderation of profitability against determinants company value

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