THE IMPACT OF LEVERAGE ON FIRMS PROFITABILITY

BOACHIE, RICHMOND SENIOR; ESIDZI, ESTHER; BOACHIE, RICHMOND JUNIOR; NYENESE, EMMANUEL; GYABENG, SOLOMON

DSpace Home
→
STUDENTS’ FINAL PROJECT (THESIS/DISSERTATION)
→
SCHOOL OF BUSINESS- ST
→
Business Administration -ST
→
View Item

dc.contributor.author	BOACHIE, RICHMOND SENIOR
dc.contributor.author	ESIDZI, ESTHER
dc.contributor.author	BOACHIE, RICHMOND JUNIOR
dc.contributor.author	NYENESE, EMMANUEL
dc.contributor.author	GYABENG, SOLOMON
dc.date.accessioned	2013-08-01T08:36:43Z
dc.date.accessioned	2022-01-18T17:44:05Z
dc.date.available	2013-08-01T08:36:43Z
dc.date.available	2022-01-18T17:44:05Z
dc.date.issued	2013-06
dc.identifier.uri	http://localhost:8080/xmlui/handle/123456789/234
dc.description	Capital structure decision is fundamental for any business organization because of the need to maximize return to the various stake holders and also because of the fact that such decision has great impact on the firms’ ability to deal with competitive environment. One crucial issue confronting managers today is how to choose the combination of debt and equity to achieve optimum capital structure that would minimize the firm’s cost of capital and improves return to owners of the business. Even though generally firms have a choice as to how to combine debt and equity, managers attempt to ascertain a particular combination that will maximize profitability and the firm’s market value.	en_US
dc.description.abstract	The study investigated the relationship between leverage and firm performance in Ghana over the period 2004 to 2008. Using time series data, the study covered the 8 listed banks over the period 2004-2008. The study observed that short term debt (STD), long term debt (LTD), and Equity respectively accounted for 31% of the variations of return on equity, 22% of the variations of return on assets and 22% of the variation of operating profit during the study period. Leverage was found to be significant (at 0.05) in influencing or determining the operating profit, returns on equity and return on assets of listed banks in Ghana.	en_US
dc.subject	IMPACT	en_US
dc.subject	LEVERAGE	en_US
dc.subject	FIRMS PROFITABILITY	en_US
dc.title	THE IMPACT OF LEVERAGE ON FIRMS PROFITABILITY	en_US
dc.title.alternative	EVIDENCE FROM QUOTED BANKS ON THE GHANA STOCK EXCHANGE	en_US
dc.type	Thesis	en_US