Published Online:January 2026
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP200126
DOI:10.71329/IUPJARAP/2026.25.1.425-434
Author Name:Jeothilakshmi S K and Saranya P
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:425-434
The paper investigates the influence of capital structure decisions on the profitability of listed IT firms in India from 2018-2023. It employs panel data from 20 top NSE-listed IT firms to explore the relationship between capital structure decision and firm profitability using fixed effects regression by controlling firm size and sales growth. The results show a significant negative relationship between debt ratios and profitability, measured by ROE. The findings highlight the unique capital structure characteristics of Indian IT companies, emphasizing the need for conservative debt strategies and leverage policies. The paper offers useful insights for owners, financial managers, operators and lending organizations based on empirical evidence from IT firms.
Finance is the lifeblood of organizations, and every decision related to financial resources plays a tremendous role in organizational success. Capital structure decision is one among them.