:::: Merit Research Journals :::::::

MERIT RESEARCH JOURNAL OF ARTS SOCIAL SCIENCE AND HUMANITIES (MRJASSH) (ISSN: 2350-2258)

/ / MRJASSH Home / / About MRJASSH / / Submit Manuscripts / / Call For Articles / / Editorial Board / / Archive / / Author's Guide / /

October 2013 Vol. 1 No. 6

Other viewing option

Abstract
• Full text
•Reprint (PDF) (297 KB)

Search Pubmed for articles by:

Pirashanthini S
Nimalathasan B

Other links:
PubMed Citation
Related articles in PubMed

Merit Research Journal of Art, Social Science and Humanities (ISSN: 2350-2258) Vol. 1(6) pp. 086-091, October, 2013

Full length Research Paper

Capital structure and firm value: An empirical study of listed manufacturing firms in Sri Lanka

Pirashanthini S. and Nimalathasan B.

University of Jaffna, Jaffna, Sri Lanka

*Corresponding Author's E-mail: spirashanthini@gmail.com

Accepted October 23, 2013

Abstract

The purpose of this study is to empirically investigate the relationship between capital structure and firm value. Using three of accounting – based measures of firm value i.e. Earnings Per Share (EPS), Price Earnings Ratio (PER), Market Value Per Share (MPS) and based on the sample of fourteen manufacturing companies listed in Colombo stock exchange, covering the period from 2008 to 2012. The results revealed that firm value, which measure by Debt Equity is significantly associated with firm value. Further, study also provides evidence that indicates firm value is positively or even negatively related to capital structure.

Keywords: Capital Structure, Firm Value, Colombo Stock Exchange (CSE)