Impact of Capital Structure on Profitability-with Special Reference to Star Health and Allied Insurance-Empirical Evidence
Author : Dr. Vanumu Chittabbai
Abstract :
One of the most crucial metrics for financial managers to monitor is the impact of financing choices on a company's capital structure and financial performance. Academics from all over the world have long been fascinated by the connection between a company's financial success and its capital structure. As a result, it is accurate to state that capital structure is the most important operational discipline. It's a useful monetary instrument for answering the question, "How do firms choose their capital structure?" A company's behavior, performance, and value are affected by its capital structure, which is the synthesis or construction of its commitments. This exploration plans to make sense of the connection between capital construction and business accomplishment without depending on genuine analyses. Data from eight trading businesses registered on the Bombay Stock Exchange (BSE) during the years 2006-07 and 2014-15 has been analysed. After entering the data into views, we performed multiple regression analysis to examine the information and check our hypothesis. The study found that a company's financial success was influenced by its capital structure. Value and long haul obligation essentially affect monetary execution, while transient obligation has a negative and measurably critical effect. This paper explains about Capital structure of Star Health and Allied Insurance on Profitability using Ratios and descriptive statistics.
Keywords :
Capital structure, profitability, financial performance, star health life insurance
