Abstract

The intricate connection between capital structure and firm performance, shedding light on the optimal decisions pertaining to capital structure that can bolster a company's competitiveness and profitability. By harnessing an extensive dataset encompassing publicly traded enterprises across diverse industries and employing sophisticated statistical methodologies. The complex relationship between capital structure and key performance indicators. It becomes apparent that an ideal capital structure lies in striking a harmonious balance between debt and equity financing, thereby maximizing profitability while minimizing financial risk. Armed with a deep understanding of the intricate nexus between capital structure and firm performance, managers can deftly allocate financial resources and optimize their capital mix, ultimately fortifying their competitive edge and ensuring long-term sustainability. The researcher had considered people from organizations to know the role of capital structure in firm performance and capital structure and found that capital structure covers procuring funds from external sources like issuing bonds or getting loans and allow companies to optimize their cost of capital and enhance their financial performance metrics.

Description