Title: A Case Study of The Impact of Apple’s Capital Structure on Corporate Performance
Author: Xu Lu
Advisor: Dr. Ma Yu
Degree: Master of Business Administration
Major: Finance and Accounting
Faculty: บัณฑิตวิทยาลัย (Graduate School)
Academic year: 2567 (2024)
Published: The 1st Thailand-Sino International Conference and The 17th National and International Academic Conference “New Quality Productive Forces and Sustainable Innovation” 14-16 November 2024 (pp.836-848) Click PDF
Abstract
This study investigates the impact of Apple Inc.’s capital structure on its corporate performance, focusing on key financial variables which include debt ratio, return on equity, and cost of capital. Apple, as one of the most successful global technology firms, presents a unique case for examining how financial decisions align with the principles of the Shareholder Value Maximization Theory. The objective of this research is to examine the relationship between Apple’s debt ratio, return on equity, and cost of capital with its corporate performance.
A quantitative research method was used to conduct the study. The data were collected through a structured questionnaire distributed to 250 financial experts and corporate finance managers, resulting in 205 valid responses. Descriptive and inferential statistical methods, including multiple regression analysis, were applied to test the hypotheses and evaluate the relationships between the variables.
The findings reveal a positive and significant relationship between Apple’s debt ratio and corporate performance, indicating that strategic debt usage enhances profitability. The study also confirms that return on equity has a strong positive impact on corporate performance, reflecting Apple’s efficient use of shareholders’ equity. Additionally, the cost of capital is found to have a negative effect on corporate performance, suggesting that higher financing costs erode profitability.
In conclusion, the study highlights the importance of carefully managing capital structure to optimize corporate performance. Apple’s ability to balance debt, maximize equity returns, and minimize the cost of capital has been key to its financial success. The results suggest that firms in industries should focus on maintaining a balanced capital structure while maximizing returns and controlling financing costs to
enhance corporate performance. Further research may explore the long-term effects of these financial decisions in different industry contexts and during economic downturns.
Keywords: capital structure, shareholder value maximization, corporate performance, debt ratio
A Case Study of The Impact of Apple’s Capital Structure on Corporate Performance /
6617195424 Xu Lu 2567 (2024) A Case Study of The Impact of Apple’s Capital Structure on Corporate Performance สารนิพนธ์ (Independent Study), Advisor: Dr. Ma Yu, ปริญญาโท (Master’s Degree), บัณฑิตวิทยาลัย (Graduate School), Master of Business Administration, Finance and Accounting, Bangkok: Siam University