TheInternationalJournalofAppliedEconomicsandFinance9(1):25-32,2015ISSN1991-0886/DOI:10.3923/ijaef.2015.25.32©2015AsianNetworkforScientificInformationCapitalStructureandFirmPerformanceofListedNon-FinancialCompaniesinBangladeshMd.AbdurRoufDepartmcntofBusinessAdministration,CityUniversity,BangladeshABSTRACTThisstudyinvestigatesthefirmperformanceoncapitalstructureforthelistednon-financialcompaniesinDhakaStockExchange(DSE)fortheperiodof2008-2011underjudgmentsamplingmethod.SpecificobjectiveofthisresearchistoexaminetherelationshipbetweentheattributeofcapitaistructureandtheperformanceasmeasuredbyReturnOnAssets(ROA)andReturnOnSales(ROS).Multipleregressionmodelswereusedtoestimatetheinfluenceofcapitalstructureonfirmperformanceandcapitalstructurewasmeasuredbythedebtratio,debttoequityratio,currentdebtratio,proprietaryofequityratioandcurrentassetsproprietors1fundsRatio.TheresultsobtainedfromregressionmodelsshowthatDebtRatio,DebtEqu让yRatioandProprietaryofEquityRatioarenegativelyandsignificantrelationshipwithReturnOnAsset(ROA)andReturnOnSales(ROS).BesidethecontrolvariabletotalassetispositivelyandsignificantrelationshipwithReturnOnAsset(ROA)andReturnOnSales(ROS).Keywords:Capitalstructure,firmperformance,DSE,non-financialcompaniesINTRODUCTIONCapitalstructurereferstothemixoflong-termsourcesoffunds,suchasdebentures,long-termdebt,preferencesharecapitalandequitysharecapitalincludingretainedearnings.Capitalstructureisoneofthemostcomplexareasoffinancialdecisionmakingbecauseofitsinterrelationshipwithotherfinancialdecisionvariables.Poorcapitalstructuredecisionscanresultinahighcostofcapital,thereby,loweringthenetpresentvalueofprojectsandmakingmoreofthemunacceptable.Effectivecapitalstructuredecisionscanlowerthecostofcapital,resultinginhighernetpresentvalueandmoreprojectsthatareacceptableandthereby,increasingthevalueofthefirm・Thestudyexamines,whatistheeffectofcapitalstructureonfirmsperformanceandinparticulardebt?Toanswerofthisquestion,itwilldiscusssomescenarios,whichrelatewiththenatureoftheimpactofcapitalstructureonfirmsperformance・Firstsituationinvolvespositiverelationbetweencapitalstructureandfirmperformance,whichindicateswhenthefirmsdependondebtasmuchasfirmsneeds,itwillleadtoenhancetheirperformance・Itcanexplainthatwhenthefinancialmanagerdependsondebtasfinancingsourcemorethanownerequity(Sayeecl,2011).Financialmanagerprefersdebtsourcemorethanequityreferstotworeasons:thecostofdebtislessthanequitycostandthetaxadvantageofdebt,whichwouldtherefore,maximizethefirmperformance(SoumadiandHayajneh,2013;ArbabiyanandSafari,2009).Secondsituationdesignate,thatthereisaninversecorrelationbetweencapitalstructureandfirmperformance(Alom,2013).Whenever,thefirmdependsondebtwithoutemployingitintoprofitableinvestments.Thus,thecostofdebtwillexceedthereturnthatfirmwillobtainit.Consequently,itwillleadtoincreasethebankruptcyriskswhicheffectinverselyonfirmperformance.---本文来源于网络，仅供参考，勿照抄，如有侵权请联系删除---Finally,thirds让uationisthat,thereisnorelationshipbetweencapitalstructureandfirmperformance(Ebaid,2009;SingapurwokoandEl-Wahid,2011).Since,thisscenariosupposesthatcostofdebtisrelativelystableandthecostofequityisnotconstant・Whenthedebtreachestocertainlevel,anyadditionalborrowingwillleadtoinabilityoffirmtomeetitsfinancialobligations.Therefore,ownersequitywillbeexposedtooperatin...