A study on determination of capital structure & it’s impact on profitability

To study has been undertaken to determine the impact of various factors on the firm and its relationship and impact of the dependent and independent variables on capital structure. Dependent-variables of Short-Term Debt-Equity Ratio, Long-Term Debt-Equity Ratio,-Total Debt Equity Ratio and Independent-variables profitability, Tangibility, Growth, Liquidity and Tax Rate. The hypothesis was formulated and tested on 5 variables viz profitability, tangibility, growth, liquidity and tax rate and five years (2011-2012 to 2015-2016) audited annual financial statements of 5 selected Indian Chemical Industries Company was consider. In future, before taking the financial decision the company should mainly focus on asset tangibility and liquidity. As it has a significant relationship with debt or borrowing of the company. The study also reveals that there was a more significant impact of short term debt-equity ratio and total debt equity ratio.