This study investigates the relationship between capital structure and financial performance at Robin Corporation Ltd, a leading beverage manufacturer in Zimbabwe.A quantitative research methodology was employed, with data collected from 31 employees through structured questionnaires.The study focuses on external and internal financing sources-debt, equity, retained earnings, and reserves-and their impact on the company's financial outcomes.The analysis reveals a positive correlation between capital structure and financial performance, suggesting that both debt and equity financing play significant roles in shaping financial results.However, it was also observed that factors such as managerial efficiency, inflation, and broader economic conditions exert substantial influence on performance.While capital structure is a critical determinant, the results indicate that effective management of these other variables is equally essential for optimizing financial outcomes.The findings underscore the importance of strategic capital management in the Zimbabwean beverage sector, emphasizing that an appropriate balance between external and internal financing is pivotal for enhancing financial performance.The study contributes to the broader understanding of capital structure in emerging markets and provides valuable insights for companies seeking to navigate the complexities of financial decision-making in volatile economic environments.
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Govere et al. (2024) studied this question.
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