Abstract:
In the corporate finance, the decision on the capital
structure and its components is viewed as one of the most extensively
researched area. In this context, researchers carried out the study on
liquidity and capital structure in the Sri Lanka telecom Plc. Data on the
Liquidity and Capital structure from the year 2005 to 2011 were collected
for the study purpose. Regression analysis was used to answer the research
question as what extent the Liquidity influences on the Capital Structure
of the Sri Lanka Telecom Plc. Findings reveled that, the decision making
on the liquidity management of the Sri Lanka Telecom Plc. Due to that, the
firm should focus on the liquidity management to take the decision on the
capital structure which should lead to the firm value in the long term
perspective.
