dc.description.abstract | Non-financial companies listed at the NSE have a crucial role to play in the
enhancement of economic growth of a country. The lack of a vibrant non-financial
sector will limit the growth of the economy of a country. By having an optimal and
beneficial capital structure, firms in the sector will experience growth in benefits such
as cost reduction. The goal of the study was to see how capital structure affected the
performance of NSE-listed non-financial companies. The study's population included
all 42 NSE-listed non-financial companies. Capital structure, defined as the total debt
to total assets ratio in a particular year, was used as a predictor variable in this study.
Liquidity was assessed by the current ratio, total assets natural log measuring
company size, and management efficiency was measured by the ratio of total revenue
to total assets per year. Return on assets served as the response variable for financial
performance. Secondary data was collected on a yearly basis for five years (January
2016 to December 2020). The research variables were analyzed using a descriptive
design. SPSS software being utilized to conduct the analysis. The conclusions yielded
a 0.294 R-square value, indicating that variations in the chosen independent variables
account for 29.4 percent of changes in financial performance amongst non-financial
firms, whereas other factors accounting for 70.6% of variance in financial
performance amongst NSE listed non-financial firms. Independent variables had a
good relationship with company performance (R=0.542) in this study. The F statistic
was significant at 5% with p<0.05, according to the ANOVA results. This
demonstrated that the overall model was effective in establishing the variables'
relationships. Capital structure had a negative as well as statistically significant
impact on financial performance, but liquidity as well as management efficiency had a
positive as well as statistically significant impact on the performance of the NSE
listed non-financial companies. In this research, the size of the firm had no statistical
significance. This study recommends that NSE-listed non-financial companies should
focus on achieving the best degree of capital structure, improving liquidity positions,
and improving management efficiency, as the three factors has a substantial impact on
their financial performance. | en_US |