Browsing by Author "Birassa, Frezewd"

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    Corporate Capital Structure and its Impact on Profitability: Evidence from Manufacturing firms in Ethiopia
    (Addis Ababa University, 2016-05) Birassa, Frezewd; Panola, Venkati (PhD)
    The aim of this paper is to provide large sample evidence on capital structure and its impact on profitability using a new database of large tax payer manufacturing firms in Ethiopia. The study employs a panel data regression analysis. The dataset comprises twenty four large tax payer manufacturing share companies covering a five-year period (2010-2014 G.C.) using firm level accounting data. Within what is referred to as capital structure the researcher is able to examine the relationship between capital structure variables and profitability. Most sample firms concentrate their borrowing in only one of these debt types especially short term debt finances and this debt specialization persists overtime. It is also clear from the study that short-term debt to total liability, long-term debt capitalization ratio and interest coverage ratio showed positive and significant impact on profitability. Other constituted variables i.e. debt ratio and debt to equity ratio found to be insignificant regarding their impact on profitability of sample firms. Therefore, no significant linear dependence was detected for debt ratio and debt to equity ratio versus profitability