Does Capital Structure Decision Affects Profitability? A Study of Selected Automobile Companies in India

The study has aimed at capital structure decision has affects the profitability of automobile companies in India. For this purpose has selected eight companies with the help of stratified random sampling techniques and this study purely empirical and analytical nature. The study extensively used for secondary data which are collected from CMIE-PROWESS published annual reports and the select companies and statistical techniques such as correlation and regression were used. The relationship between capital structure and profitability of selected variables has mixed effects of both positive and negative association. The study also found that capital structure strongly and significantly affected the profitability of the automobile companies.