CAPITAL STRUCTURE AS A MEDIATING FACTOR II{ THE RELATIONSHIP BETWEEN UNCERTAINTY, CSR AND FINANCIAL PERFORMANCE: SERVICE SECTOR IN AMPARA DISTRICT.

Abstract

This study investigates the capital structure as a mediating factor in the relationship between uncertainty, CSR and financial performance. Uncertainty and Corporate social responsibility (CSR) are the independent variables. And financial performance is as the dependent variable. Capital structure as a mediator between the two variables. Using a structured questionnaire, the data were collected from 54 chief financial officers of seven selected banks and two telecommunications of service sector in Ampara District. And the collected data were analyzed by using descriptive statistics, correlation, regression and mediating analyses. The findings reveal that the uncertainty, CSR, capital structure and financial performance are in high level among the organizations of banks and telecommunication in service sector. The analyses stated the strong negative relationship between the uncertainty and financial performance, the strong negative relationship between uncertainty and capital structure and the strong positive relationship between CSI{ and financial performance and the strong positive relationship between CSR and capital structure and the strong positive relationship between the capital structure and financial performance, capital structure has been found to a partial mediating effect on the relationship between Uncertainty , CSR and financial performance.