Impact of Capital Structure on Profitability of Indian Manufacturing Firms Jain Surbhi1, Bhargava Ankush2, Bhargava Arpit3 1Assistant Professor, Commerce Department, Kamala Nehru College, University of Delhi, New Delhi, India 2Assistant Professor, Commerce Department, Zakir Husain Delhi College Evening, University of Delhi, New Delhi, India 3Student, Master of Science in Economics, TERI University, India Online published on 17 July, 2017. Abstract The aim of this paper is to empirically test the relationship between capital structure and profitability of Indian manufacturing companies listed at National Stock Exchange (NSE) for the period 2011–2015. Fixed effect panel regression model is used to estimate the relationship between the two. The results reveal a significantly positive relation between the ratio of short-term debt to total capital employed and ROA i.e. Return on Total assets. Similar results are found for ratio of totaldebt to total capital employed and ROA. However, with regard to the relationship between long-term debt and ROA, the results show a positive but insignificant association between the two. Top Keywords Capital structure, Profitability, Panel Data, India. Top |