Determinants of Capital Structure: An Empirical Study on Cement Industry in Bangladesh


  • Manjurul Alam Mazumder Lecturer, Department of Business Administration, International Islamic University Chittagong, 154/A, College Road, Chawkbazar, Chittaong-4203, BANGLADESH


Leverage, Capital Structure, Tangibility, Profitability, Size, and Growth


Cement industry plays a vital role in the infrastructural development of Bangladesh. This industry requires huge amount of funds to organize a business and for further expansion of its capacity due to its capital intensity. The Capital structure of this industry shows unique features. The Debt ratio is taken to examine the impact of high or low the overall capital structure. Impact on the debt ratio is measured by five independent variables i.e., tangibility, profitability, size, growth, and tax. Spearman’s correlation coefficient, multiple regression model, and t-statistics are used as statistical tools. The result suggests that profitability and growth have a significant impact on dependent variable (debt ratio) but they are negatively correlated, size, and tax has no significant impact on debt ratio.



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Original Research Article