Relationship Between Capital Structure And Corporate Performance: Case Study of UK

Capital structure serves as the pivot and backbone for the business and is regarded as the most needed tool for establishing the business. The current research will be dealing with the capital structure and its significance in the corporate sector. As it is known that capital is the essential of business, therefore maintaining a proper capital structure is very much important for the firms to stand the competition faced in the corporate sector of United Kingdom. The business scale is dependent upon the structure of capital and the strategies to preserve it. The study will be highlighting the relationship between the capital structure and the performance of the UK industries. Every corporate sector requires ascertaining the structure of capital and must adopt a relevant capital recording format to highlight the strength of the company. Therefore, the requirement is from both aspects relating to the capital and corporate performance. It can be said that enhancement of the business can be supported with the capital provided to the company.

The research questions highlight the significance of the research. They are:

• What is the significance of capital structure in UK economy?
• What is the impact of capital structure upon the performance of companies in UK?

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