How does Capital Structure Impact on Profitability of Listed Firms of Ghana Stock Exchange?

Evaluating the impact of capital structure on the profitability of listed companies on the Ghana Stock Exchange (GSE) was the primary goal of the research. Using a sample of 10 companies chosen from a population of 42 GSE listed firms, the study aims to specifically analyse the capital structure of selected listed companies, ascertain the relationship between capital structure and profitability of the selected listed companies, and investigate the effects of capital structure on the profitability of the selected listed companies in Ghana. In order to accomplish its goals, the study used regression and correlation analysis. The results of the correlation study demonstrated a substantial positive association between equity and both ROA and NPM. Long-term debt, on the other hand, is negatively correlated with profitability. According to the regression study, ROCE, ROA, and NPM will all drop as long-term debt increases. ROA and NPM will rise in response to an increase in equity. Thus, the study suggests that businesses should make every effort to rely as much as possible on retained earnings. Second, in order to help listed enterprises run with capital, the government should set up mechanisms to increase the confidence of citizens to invest on the GSE.