EFFECT OF CAPITAL STRUCTURE ON FIRM PERFORMANCE: A SYSTEMATIC REVIEW

This study provides a systematic review of the literature on the effect of capital structure on firm performance. A total of 100 articles are identified, reviewed and analyzed, including both empirical and theoretical studies. The findings suggest that there is no clear consensus in the literature on the effect of capital structure on firm performance. Some study finds a positive relationship, while others reported negative or no relationship. Future studies on the subject matter should explore the moderating or mediating effect on the nexus between capital structure and firm performance.