Capital structure and profitability: Panel data evidence of private banks in Ethiopia

The paper primarily studied the empirical relationship between capital structure, as measured by total and short-term debt ratios, profitability of private banks in Ethiopia, for period 2013/14 to 2018/19, using panel fixed effects. A survey 16 are included study. Based on regression analysis results, structure variables some bank-specific characteristics explain a substantial part variations bank profitability. Higher measures ROA net interest margin tend be associated with relatively higher loan deposit credit risks. Besides, older better position than younger counterparts terms impact size is found significantly negative, at least model, implying that Ethiopian operating below their optimal capacity. Mixed results were pertaining coefficient estimates cos–income ratio employee productivity.