IMPACT OF CAPITAL STRUCTURE ON BANK PERFORMANCE: A STUDY ON JANATA BANK LIMITED OF BANGLADESH

Abstract

This study aims to examine the impact of capital structure on the bank performance of Janata Bank Limited (JBL) from 2011 to 2021. Furthermore, the goal of this study is to determine the connection between debt combinations and financial performance. For analysis, secondary data are mainly used from the last 11 years (2011-2021) annual reports of Janata Bank Limited. In this study capital structure measures (long-term debt on equity, long-term debt on the asset, total debt on equity, total debt on the asset, short-term debt on equity, short-term debt asset) are selected as the independent variables, and performance measures (return on asset, return on equity, return on investment) were considered as the dependent variables. As statistical tools, regression and correlation analysis have been used in this study. The study's findings demonstrated a strong correlation between JBL's capital structure and financial performance.