mean, median, standard deviation, minimum, maximum, skewness, correlation and regression and the hypotheses were tested at (α = 0.05) level of significance (0.95 confidence level). Correlation analysis.Correlation analysis is used to identify the relationship or connection between independent variable i.e. capital structure and dependent variable i.e. profitability. As secondary data is being analyzed spearman correlation under one tail is used.Regression analysis. With the aim of carrying out the study on analyzing impact of capital structure on profitability, ordinary least square method of regression has been used. This model is used to show the relationship between a response variable and one or more predictor variables. Presentation and analysis of dataThe aim of this study is to find out the relationship between capital structure and profitability in the manufacturing and hotel sector of Nepal. To address the aim, this study employs various tools and techniques in order to find the relationship. This chapter gives detailedinformation on the results of this study, with refined discussion. In this chapter, examination of the factors likely to affect the profitability is done that is measured by ROE, net income and total asset turnover ratio. This chapter has been divided into two sections: first section includes the presentation and analysis of the data and the second section includes the concluding remarks.Analysis of dataThis study relies on the analysis of secondary data to derive the empirical findings on the study. This section has been further divided into four subsections. In the first subsection, discussion about the structure and pattern of the variables under study is done, the second
DETERMINANTS OF CAPITAL STRUCTURE27subsection presents the descriptive statistics, the third subsection presents the analysis and result of correlation and the fourth subsection shows the analysis and result of regression analysis.Structure and pattern of variables under studyThe structure and pattern of variables for each variable on an individual company basis for all theyear under study and all the companies in each year basis are analyzed and tabulated. Table 2 presents the hotel and manufacturing company’s mean, standard deviation, minimum, maximum.From the table, it is observed that the mean value of net income after tax is NPR 118113716.7 forthe whole sample, whereas at organization level, Soaltee Hotel Limited has the highest mean value of net income after tax, NPR 176669891.9 and Himalayan Distillery has the lowest mean value of NPR 105223948.2. The standard deviation of net income after tax is 79568854.95, return on equity is 0.1018, total assets turnover ratio is 0.50741 and debt to equity is 1.01226.From table 3, presents the firm and year level mean, standard deviation, minimum and maximum of Nepal Lube Oil. From the table, it is observed that the mean value of net income after tax is NPR 14618088.05 for the whole sample of Nepal Lube Oil. The standard deviation ofnet income after tax is NPR 8769075.021, return on equity is 0.08864, total assets turnover ratio is 0.03118, and debt to equity is 0.37923.