The effect of capital structure on firm profitability

Abstract

This work examines the current state of capital structure impact on firms’ profitability, from the literature by reviewing empirical investigations most recurrent impact of capital structure from 2015 till 2020 on different firms’ performance have been evaluated. The result explains distinctive finding, many explain appositive association while, from findings of some scholars’ firm’s performance negatively associated with capital structure. Thus, Inconclusive result on this topic explains a necessity for more academic work in this regard. But, quite easily finding explains a significant implication on capital structure on organizations performance and reflects financial health and firms- survival.