BUSN20019: Capital Structure & Financial Performance of CSR Limited

This research project investigates the impact of capital structure on the financial performance of CSR Limited, an organization listed on the ASX. It addresses the crucial role of capital structure in influencing shareholder returns and organizational resilience against economic challenges. The study uses secondary data from CSR Limited's annual reports (2014-2018) to explore the effects of capital structure on financial performance, focusing on return on assets (ROA) and return on equity (ROE). The research employs both qualitative and quantitative methods to analyze the relationship between capital structure and overall firm performance, referencing peer-reviewed scholarly articles that link leverage ratios to ROA and ROE, considering short-term debt, long-term debt, and equities. The project plan includes a Gantt chart outlining the proposed research timeline.

Running head: IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE
Impact of Capital Structure on Financial Performance: A Study on CSR Limited
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE
Table of Contents
1. Statement detailing field of research:.....................................................................................2
2. Source of secondary data:......................................................................................................2
3. Research questions:................................................................................................................2
4. Search terms:..........................................................................................................................2
5. Three peer-review scholarly articles:.....................................................................................2
References:.................................................................................................................................3
Appendix:...................................................................................................................................4

2IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE
1. Statement detailing field of research:
This research paper intends to explore the impact of capital structure on the financial
performance of CSR Limited, an ASX listed organisation. The capital structure affects the
return earned by an organisation for its shareholders and its survival against economic
shocks. Therefore, capital structure is crucial for the survival and growth of an organisation,
as it plays a critical role in financial performance for accomplishing long-term objectives.
2. Source of secondary data:
For this research, readily available secondary data are available from
“https://www.csr.com.au/investor-relations-and-news/annual-meetings-and-reports” with
figures for the period of 2014-2018. The above website contains the latest annual reports of
CSR Limited.
3. Research questions:
Qualitative study:
 What are the effects of capital structure on the financial performance of an
organisation?
Quantitative study:
RQ1: What is the impact of capital structure on return on assets and return on equity of CSR
Limited?
RQ2: How does capital structure influence the overall firm performance of CSR Limited?
4. Search terms:
In order to conduct the research successfully, the key terms that would be used
include capital structure, CSR Limited, leverage, firm performance, equity, debt, return on
assets and return on equity.
5. Three peer-review scholarly articles:
The three scholarly articles, which could be found from the references section,
investigate the ways through which capital structure influence the firm performance for the
different constituents in listed indices. Moreover, the articles provide a link between leverage

3IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE
ratios and return on assets and return on equity by considering short-term debt, long-term
debt and equities of the various listed organisations in different stock indices.

4IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE
References:
Githire, C. & Muturi, W. (2015). Effects of capital structure on financial performance of
firms in Kenya: evidence from firms listed at the Nairobi Securities
Exchange. International Journal of Economics, Commerce and Management, 3(4), 1-
10.
Kodongo, O., Mokoaleli-Mokoteli, T., & Maina, L. N. (2015). Capital structure, profitability
and firm value: panel evidence of listed firms in Kenya. African Finance
Journal, 17(1), 1-20.
Simona, P. M. (2015). The influence of capital structure on financial performance. American
Economic Review, 48(3), 261-297.

5IMPACT OF CAPITAL STRUCTURE ON FINANCIAL PERFORMANCE
Appendix:
Table 1: Gantt chart of the proposed research
(Source: As created by author)