Thesis (MSc) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department

Includes bibliography (sheets 38-43)

ABSTRACT The goal of this research is to determine empirically the impact of capital structure on the financial performance of the top Ten Ghanaian Companies (Ghana) between 2018 and 2021. The study is carried out using relevant information from the top Ten Ghanaian Companies listed on the Ghana Stock Exchange. For the dependent variables, the research employs four performance indicators: return on equity (ROE), return on assets (ROA), and earnings per share (EPS). Also, the independent variables are represented by the two capital structure ratios known as long-term liabilities and short-term liabilities as well as the rate of growth of total assets, are used. While the size or magnitude is the control variable. The findings show that the financial performance of firms, as measured by Return on assets and Return on equity, has a negative relationship with long-term liabilities in the majority of the studied sectors, whereas short-term debts have no massive effect on these ratios. The performance quantified by Earnings per share is also unrelated to the company's leverage. When we take into account all companies without distinguishing their type of business, these findings are consistent for Return on assets, Return on equity and Earning per share. Aside from that, the size and growth factors benefit the firm's financial performance. Ultimately, it appears that the global economic crisis during the pandemic has little influence on the correlation between leverage and profitability factors. Keywords: Capital structure, debts, financial performance, leverage, performance measures