Impacts of the capital structure on the profitability

Abstract

One of the most confusing issues facing financial managers is the impact of capital structure on the profitability of a company. This study was conducted to evaluate the impact of capital structure on the profitability of 30 companies listed on the Ho Chi Minh City Stock Exchange from 2010 to 2022. Descriptive statistics, correlation, and regression models were used to analyze the data. Four different regression models were applied to explore the relationship between capital structure and profitability. These models were used to study the individual impact of total debt and total equity ratio on profitability (ROA and ROE). The study’s findings suggest that there is a significant positive impact of capital structure on the profitability of a company
Keywords
capital structure profitability influence

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