AN EMPIRICAL STUDY ON CAPITAL STRUCTURE AND ITS IMPACT
ON BANK'S PERFORMANCE : WITH SPECIAL REFERENCE TO SBI
Author: Jignesh B. Bhatt, Jignesh R. Vaja, Hetal B. Panchal
Category: Human Resource Management
Abstract:
Financing decisions are one of the most critical areas for finance managers. It has direct impact on capital structure and financial performance of the
companies. It has always been an area of interest for researchers to
understand the relationship between capital structure and financial performance of
the company. This paper analyses the relation between capital structure decision &
financial performance of SBI using data from the financial year 2008 to 2012. The
data were analysed on the basis of correlation between profitability ratio i.e. return
on long term fund, return on net worth, return on assets, & EPS & capital structure
ratios i.e. total debt to owners fund ratio. Results of our study demonstrated that
capital structure influences financial performance.
