A Study on the Impact of Capital Structure in...

A Study on the Impact of Capital Structure in Financial Performance of Selected Automobile Firms in India

Author Name : Nithin S B

ABSTRACT

Capital structure decision is  the  interaction  between  a  company's  equity  capital, preference  capital,   debt capital  and  internal  reserves - in  order  to  determine  what  capital  mix  would  be  best  suited  to  maximize the  profitability  of  the  company. In today’s  complex  business  world, it   is  essential  to  understand  in threadbare  the  factors  that  affect  the  profitability  and  performance  of  the  company.  This  study  will throw light  on  the  relationship  between  capital  structure  and  profitability  among  5  automobile companies. it is very important to have a clear idea of these factors and costs of different sources in the Automobile industry. Therefore, the problem in the study is to determine and find out an effective determinant of capital structure. The study conducted for the periodfrom 2013 to 2022. In this research, only Automobile industry were considered for the evaluation and identification of factors responsible for the different financial performance and capital structure. The results that are extracted from this study indicate that there is no significance relationship between the hypotheses of this study. So it is suppose that the some complexity have take place in gathering data by the way of quantitative research approach.

Key words: Capital structure, financial performance