Financial Decision Engineering: Impact of Capital Structure on Business Performance in the Peruvian Manufacturing Industry, 2015-2024

Authors

  • Cinthia Aracely Gonzáles Sánchez Universidad Tecnologica del Peru UTP - (PE), Perú
  • Juan Andrés Valdera Vásquez Universidad Tecnologica del Peru UTP - (PE), Perú
  • Jessica Fernandez Salazar Universidad Tecnologica del Peru UTP - (PE), Perú

DOI:

https://doi.org/10.18687/LACCEI2026.1.1.927

Keywords:

capital structure, corporate profitability, financial leverage, industrial sector, emerging markets, panel data.

Abstract

Abstract— Capital structure represents a critical strategic decision that significantly influences corporate financial performance. This research evaluates the impact of capital structure on profitability of 21 Peruvian industrial companies supervised by the Securities Market Superintendency during 2015-2024, employing panel data regression analysis with fixed effects. The findings reveal a statistically significant non-linear relationship between leverage and profitability metrics (ROE, ROA, operating margin, net margin), evidencing that moderate debt levels optimize returns through tax shields, while excessive leverage increases financial risk and reduces operational efficiency. Keywords— capital structure, corporate profitability, financial leverage, industrial sector, emerging markets, panel data.

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Published

2026-07-27

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

LACCEI retains copyright of all published articles under the terms of its copyright transfer agreement. As the copyright holder, LACCEI distributes the articles to the public under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA 4.0).

How to Cite

Gonzáles Sánchez, C. A., Valdera Vásquez, J. A., & Fernandez Salazar, J. (2026). Financial Decision Engineering: Impact of Capital Structure on Business Performance in the Peruvian Manufacturing Industry, 2015-2024. LACCEI, 1(14). https://doi.org/10.18687/LACCEI2026.1.1.927