An Overview of Debt Financing and Corporate Performance in Bangladesh's Fuel Industry: Empirical Data from the Dhaka Stock Exchange

Abstract

Financing decisions is a crucial decision for the companies all over the world regardless of the nature of the economy. One of the sources of corporate capital is capital market. And certainly, the capital market investment is critical for the growth and market capitalization of any economy, especially for Bangladesh's domestic industry, trade, and commerce. The stock exchange in Bangladesh has been in a number of precarious circumstances in recent years. This study looks at the profitability of organizations that take on long-term financing of listed fuel and power sectors on Bangladesh's Dhaka stock exchange from the tenure 2018 to 2022. The primary goal of this investigation is to investigate the elements that determine corporate profitability. This study's purpose is to extensively examine the influence of dependent factors on independent variables. Profitability is the factor that is dependent in this study, with the independent factors being business size and age, accounts payable, and short-term and long-term debt. The quantitative technique was employed to achieve this purpose. All of the data utilized in this study was obtained from the official website of the Dhaka Stock Exchange (DSE). According to the study's findings, no other factor has a substantial influence on the financial viability of enterprises who obtain long-term funding. This means that businesses should seek stock funding rather than debt finance. All of the debt financing characteristics analyzed for this study, including short-term debt, long-term debt, point to enterprises opting for equity financing.