Browsing by Author "Yemesrach, Adamu"
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Item Capital structure & corporate performance: A panel data analysis of Pharmaceutical Manufacturing Firms in Ethiopia(Addis Ababa University, 2018-10) Yemesrach, Adamu; Habtamu, Berhanu (PhD)This study investigated the relationship between capital structure and financial performance of pharmaceutical manufacturing firms in Ethiopia. Seven (out of nine) pharmaceutical manufacturing firms operating in Ethiopia were considered in the study. Those pharmaceutical manufacturing firms that have been ten and more years in operation were taken with the idea of increasing the volume of data. The study employed descriptive survey research design and the data was collected from secondary sources i.e. audited financial statements of the respective firms. The data were extracted from the financial statements of respective firms for the period 2007-2016. The study applied panel data models (fixed effects). A computer package EVIEWS 9 was used to solve the multiple regression equations used in this study. Ordinary Least Square (OLS) regression results revealed that long term debt to equity ratio (LTD) has significant negative relationship with return on asset while total debt to asset ratios (TDA) had a statistically significant positive association with performance as measured by return on assets (ROA). All control variables used in the models (Age, SIZE, LQ, & SG) has statistically significant relation with return on asset.