Impact of Capital Structure on Firm’s Profitability: A Study of Selected Listed Automobile Companies in India

Abstract

The objective of this study is to investigate the impact of capital structure on firm’s profitability through the selected automobile companies in India. The study is based on secondary data i.e. five years financial statements collected from PROWESS data base of CMIE. Based on correlation coefficient, study found a significant negative relationship between debt and profitability meaning that companies with higher proportion of debt tend to have low profitability.