Year of Graduation
Relationship between Сapital Structure and Firm's Performance (the Case of Retail Industry)
This study investigates relationship between the leverage and firm’s performance and also answers the question which of the many theories of capital structure better describes current situation in retail industry. At present, this topic is poorly covered in the works considering developed countries. Using the sample of 123 companies from USA, Canada, China, Korea, Japan, France, Germany, Great Britain and Russia over 2009-2018 it was found that leverage has a negative effect on profitability of the firm measured as return on assets. Nevertheless, only the influence of short-term debt to total assets on ROA is significant. The results of research are consisted with the pecking-order theory.