The study examines the effect of leverage and capital on the profitability of selected Saudi Arabian Banks during the period 2014 and 2019. The banks have been selected based upon their size in terms of total assets. The profitability elements, such as Earnings per Share (EPS), Return on Assets (ROA), and Return on Equity (ROE) are the dependent variables; Total Debt Ratio (TDR), Tier 1 Capital Ratio (Tier 1 CAP), and Debt to Equity Ratio (DE) are the independent variables, and firm size is the control variable. The study estimates a pooled regression analysis to analyze the effect of these variables. The results of the study show that there is a positive relationship between the different profitability variables and Debt to Equity Ratio. The Total Debt Ratio is having positive association with ROA and ROE, and has an insignificant negative relationship with the EPS, and the Tier 1 capital ratio is having positive association with ROA and ROE, and has an insignificant relationship with the EPS.

This study aims to determine the relationship between the capital structure and economic value added. In this context, the rates of total debt to total asset, total current debt to total asset, total long debt to total asset and total debt to total equity are distinguished as the measures of capital structure. The data used in this study consisted of a sample of 133 companies listed in Tehran Stock Exchange from 2008 to 2012. To analyze the data and to perform hypothesis tests, a linear regression model, based on combinatorial methods or data panel, and also a nonparametric Spearman correlation analysis have been applied. The results of the research hypothesis tests based on regression analysis revealed an insignificant relationship between capital structure and economic value added. Furthermore, the results showed that, there was an inverse moderate relationship between rate of total debt to total asset and total current debt to total asset with economic value added. There is an inverse weak relationship between rate of total long debt to total asset and total debt to total equity with economic value added.