The purpose of this study is to empirically investigate the relationship between capital structure and firm value. Using three of accounting – based measures of firm value i.e. Earnings Per Share (EPS), Price Earnings Ratio (PER), Market Value Per Share (MPS) and based on the sample of fourteen manufacturing companies listed in Colombo stock exchange, covering the period from 2008 to 2012. The results revealed that firm value, which measure by Debt Equity is significantly associated with firm value. Further, study also provides evidence that indicates firm value is positively or even negatively related to capital structure.
 

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