Author(s):
Md. Mehedi Hasan, Md. Hasan Uddin, Sharmin Shila
Email(s):
hasan14860@pstu.ac.bd
DOI:
10.52711/2321-5763.2025.00033 
Address:
Md. Mehedi Hasan1, Md. Hasan Uddin2*, Sharmin Shila3
1Department of Finance and Banking, Patuakhali Science and Technology University, Patualhali, Bangladesh.
2Professor, Department of Finance and Banking, Patuakhali Science and Technology University, Patualhali, Bangladesh.
3Department of Finance and Banking, Patuakhali Science and Technology University, Patualhali, Bangladesh.
*Corresponding Author
Published In:
Volume - 16,
Issue - 3,
Year - 2025
ABSTRACT:
reflects the overall return required for the firm to sustain its value through efficient asset management and business operations. Therefore, achieving a balance between financing and capital costs is critical for effective financial management. This study examines how the cost of capital impacts the profitability and value of 120 manufacturing companies listed on the Dhaka Stock Exchange (DSE) from 2017 to 2023. The research findings provide valuable insights for manufacturing firms in Bangladesh, demonstrating that cost of capital does not significantly affect profitability and firm value, allowing firms to focus on scaling and debt management without overemphasizing capital costs. This highlights the critical role of firm size and leverage in improving financial outcomes. Consequently, the study recommends that companies prioritize increasing their scale while effectively controlling their cost of capital.
Cite this article:
Md. Mehedi Hasan, Md. Hasan Uddin, Sharmin Shila. Examining How Cost of Capital Affects Firm Profitability and Value: Findings from Bangladesh. Asian Journal of Management. 2025;16(3):222-6. doi: 10.52711/2321-5763.2025.00033
Cite(Electronic):
Md. Mehedi Hasan, Md. Hasan Uddin, Sharmin Shila. Examining How Cost of Capital Affects Firm Profitability and Value: Findings from Bangladesh. Asian Journal of Management. 2025;16(3):222-6. doi: 10.52711/2321-5763.2025.00033 Available on: https://ajmjournal.com/AbstractView.aspx?PID=2025-16-3-8
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