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Impact of Capital Structure on Financial Performance of the Listed Companies in the Material Sector in Sri Lanka

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dc.contributor.author Ranaweera, D.C.P.
dc.contributor.author Jayawardhana, J.R.N.N.
dc.date.accessioned 2021-12-13T06:48:31Z
dc.date.available 2021-12-13T06:48:31Z
dc.date.issued 2021
dc.identifier.citation Ranaweera, D.C.P., Jayawardhana, J.R.N.N. (2021). Impact of Capital Structure on Financial Performance of the Listed Companies in the Material Sector in Sri Lanka. Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, p.27. en_US
dc.identifier.issn 2465-6399
dc.identifier.uri http://repository.kln.ac.lk/handle/123456789/24145
dc.description.abstract A company's capital structure is a critical decision. It is critical not only from the standpoint of profit maximization but also because this decision has a significant impact on a company's capacity to compete successfully. This research paper attempts to investigate the impact of capital structure on a firm's financial performance based on the 18 material sector listed companies in Colombo Stock Exchange (CSE) from 2015 to 2020. SPSS 22 was used to analyze data. Descriptive Statistics, Regression Analysis, and, Correlation Analysis, were used as statistical tests to reveal the relationship and the association between the variables. The results show that debt ratio and debt to equity ratio are negatively correlated with all financial performance measures [Gross Profit Margin (GPM); Net Profit Margin (NPM); Return on Assets (ROA) and Return on Capital Employed (ROCE)]. In conclusion, The Capital Structure has a statistically significant impact on Net Profit Margin and Return on Assets, and the Capital Structure has no significant impact on Gross Profit Margin and Return on Capital Employed. en_US
dc.publisher Faculty of Commerce and Management Studies, University of Kelaniya en_US
dc.subject Capital structure, Financial performance, Material sector companies en_US
dc.title Impact of Capital Structure on Financial Performance of the Listed Companies in the Material Sector in Sri Lanka en_US


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