Main Article Content
Abstract
The main purpose of the study was to examine the effect of capital structure on the performance of manufacturing companies listed at the Nepal Stock Exchange. Secondary data of eight manufacturing were obtained from the published annual reports and financial statements of the respective companies covering the years 2004-2014. The results of multiple regressions analysis show that capital structure has a significant negative relationship with the performance of Nepalese manufacturing companies. In addition to capital structure, the firm performance is significantly positively associated to the firm size but negatively associated to the tangibility. The study concludes that higher use of debt in capital structure reduces the performance of Nepalese manufacturing companies.