its impact on firm performance: A study on Sri Lankan listed manufacturing companies

This paper examines the relation between capital structure performance . The main objective of this study is to examine the relationship between capital structure and firm performance in listed manufacturing firms in Sri Lanka. In a way, the present study is initiated on capital structure and firm performance the samples manufacturing companies using the data representing the periods of 2008 2012. Gross profit, net profit, returns on equity and return on assets were used as the measures of firm performance whereas and debt assets ratio were used as the measures of statistical tests were used includes: descriptive statistics, correlation and regression analyses. The results show that gross profit, net profit, return on equity, return on assets, are not significantly correlated with equity ratio and Gross profit margin and Return on equity are significantly correlated with debt assets ratio as the measures of capital structure has significant impact on gross profit and equity. The study only used data from the 2008 However, the findings have highlighted the effects of the and capital structure. The study contributes to literature in Sri Lanka. Furthermore, the finding of t he paper can be considered as helpful for managers and users that are anxious to develop financial description quality and practices of capital structure.