The study found i) a positive relationship between the ratio of short-term debt to total assets and return on equity, ii) a negative relationship between the ratio of long-term debt to total assets and return on equity, and iii) a positive association between the ratio of total debt to total assets and return on equity.

The results of the study shows a significant positive relationship between short term debt to total assets and profitability and total debt to total assets and profitability in the service and manufacturing industry whereas the relationship between long term debt to total assets and profitability is positive but insignificant in manufacturing industry and insignificant in service industry.

Following the literature survey, total debt to total assets and debt equity ratio has been used as the proxy for measuring capital structure in the present study.

The capital structure of the corporate is measured by popular corporate leverage ratio like debt equity ratio or total debt to total assets (TDTA) some of the other ratios are total debt to total assets (TDTA), long-term debt to total assets (LTDTA) and short-term debt to total assets (STDTA) as proxies for capital structure.

The Dependent Variable of the model is Capital Structure (Leverage), which is alternatively measured by Total Debt to Total Assets (TDTA), Total Debt to Total Equity (TDTE), Long Term Debt to Total Assets (LTDTA), and Short-Term Debt to Total Assets (STDTA), Alonso (2003).

The Dependent Variable of the model is systematic risk [beta] and the independent variables being is Capital Structure (Leverage), which is alternatively measured by Total Debt to Total Assets (TDTA), Total Debt to Total Equity (TDTE), Long Term Debt to Total Assets (LTDTA), and Short-Term Debt to Total Assets (STDTA), profitability, growth and corporate size.

Size is the ratio of the market capitalization of the firm to the total market capitalization of all the firms listed on CRSP Leverage is the ratio of

total debt to total assets.

Therefore, we expect that such a reputation would amplify the effect of non-dependence, hence bonds to total assets ratio is expected to be more significant than both other loans to total assets and total debt to total assets ratios.

Access to other forms of credit are represented by bank debt to total assets (BANK) and total debt to total assets (TDEBT).

TOTAL DEBT is the ratio of total debt to total assets.

In terms of financial structure, Korea's debt ratio is only one-quarter of what it was 10 years ago while it's

total debt to total assets has fallen by half, and is similar to that in the US, Japan and other developed countries.