MAPPING THE RESEARCH LANDSCAPE OF CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE THROUGH BIBLIOMETRIC AND SYSTEMATIC LITERATURE REVIEW

Abstract

Capital structure and financial performance have long been a focal area in finance and corporate strategy. Understanding the relationship between capital structure and financial performance is crucial for firm’s decision making and enhancing profitability. This study investigates the intricate relationship between capital structure and financial performance in order to facilitate the development of a better theoretical and practical understanding. This paper employs PRISMA approach to conduct a comprehensive systematic literature review and Bibliometric analysis to explore existing level of research in this domain. It also seeks to uncover gaps in existing knowledge while highlighting the implications of financing decisions on financial outcomes.  The findings indicate significant variation in capital structure strategies across industries and regions, influenced by factors such as market conditions, regulatory environments, and firm-specific characteristics. The study also identifies a noticeable gap in sector-specific research, suggesting a need for more focused studies. The bibliometric analysis further indicates significant academic interest globally, particularly in emerging markets where financing constraints and institutional differences may impact capital structure strategies. This study contributes meaningfully to the existing literature by providing a structured overview of the research area, identifying future research opportunities, and providing insights for academics, industry practitioners, and policymakers aiming to optimize financial strategies in capital-intensive industries.