An Empirical Analysis of Capital Structure and Firm’s Financial Performance in a Developing Country

1
Alamgir Hossain
Alamgir Hossain Lecturer
2
Abdullah Al Yousuf Khan
Abdullah Al Yousuf Khan
3
M. Saifullah Khalid
M. Saifullah Khalid
1 IUBAT—International University of Business Agriculture and Technology and Brac University, Dhaka
3 IUBAT-International University of Business Agriculture and Technology

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GJMBR Volume 19 Issue C3

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This paper aims to empirically study the relationship between capital structure and firm’s financial performance in a developing country like Bangladesh. The investigation has been conducted through using panel data procedure for a sample of Dhaka stock market enlisted all IT firms during the year of 2013-2017. This research works have been performed through the three performance measures including return on equity, return on asset, and earnings per share as dependent variables, where capital structure is considered as debt ratio (DR), equity ratio (ER), long-term debt ratio (LTDR), short-term debt ratio (STDR) and used as independent variables. However, descriptive statistics, correlation, pooled ordinary least square analysis, fixed effect and Random effect model has been analyzed to find the relationship between capital structure and financial performance.

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No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

Alamgir Hossain. 2019. \u201cAn Empirical Analysis of Capital Structure and Firm’s Financial Performance in a Developing Country\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 19 (GJMBR Volume 19 Issue C3): .

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: F65
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April 15, 2019

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This paper aims to empirically study the relationship between capital structure and firm’s financial performance in a developing country like Bangladesh. The investigation has been conducted through using panel data procedure for a sample of Dhaka stock market enlisted all IT firms during the year of 2013-2017. This research works have been performed through the three performance measures including return on equity, return on asset, and earnings per share as dependent variables, where capital structure is considered as debt ratio (DR), equity ratio (ER), long-term debt ratio (LTDR), short-term debt ratio (STDR) and used as independent variables. However, descriptive statistics, correlation, pooled ordinary least square analysis, fixed effect and Random effect model has been analyzed to find the relationship between capital structure and financial performance.

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An Empirical Analysis of Capital Structure and Firm’s Financial Performance in a Developing Country

Alamgir Hossain
Alamgir Hossain IUBAT—International University of Business Agriculture and Technology and Brac University, Dhaka
Abdullah Al Yousuf Khan
Abdullah Al Yousuf Khan
M. Saifullah Khalid
M. Saifullah Khalid IUBAT-International University of Business Agriculture and Technology

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