1Research Scholar, Department of Accountancy & Business Statistics(A.B.S.T), University of Rajasthan, Jaipur, India, Email id: teenakumawat786@gmail.com
2Associate Professor Department of Accountancy & Business Statistics (A.B.S.T), University of Rajasthan, Jaipur, India, Email id: lalmorani@rediffmail.com
Online published on 10 April, 2019.
The capital structure decision is crucial for any business organization. The decision is important because of the need to maximize returns to various organizational constituencies, and also because of the impact such a decision has on a firm‘s ability to deal with its competitive environment. The capital structure of a firm is actually a mix of different securities. This paper seeks to investigate the relationship between capital structure and profitability of telecom industry by selecting 4 major players of the sector for a six-year period i.e., 2011–12 to 2016–17. Regression analysis is used in the estimation of functions relating the profitability in relation to capital structure. The results reveal a significantly positive relation between profitability and the 3 variables and ratio of i.e., NOP, Ke and Kd in telecom industry.
Profitability, Capital Structure, Ke, Kd, NOP
