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Financial Decision Engineering: Impact of Capital Structure on Business Performance in the Peruvian Manufacturing Industry, 2015-2024 (#927)

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Date of Conference

July 15-17, 2026

Published In

"Engineering without Borders: Artificial Intelligence, Knowledge, Innovation, and Alliances for a Future from the Americas"

Location of Conference

Santiago (Chile)

Authors

Gonzáles Sánchez, Cinthia Aracely

Valdera Vásquez, Juan Andrés

Fernandez Salazar, Jessica

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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