Master II thesis in finance and risk management

The objective of this research is to examine the moderating effect of capital structure on the relationship between foreign ownership and financial performance. This relationship with is a less studied topic in the literature. This work uses secondary data from the National Institute of Statistics of 190 firms from the year 2016-2017. Our results show that foreign ownership positively influences financial performance and that foreign equity ownership is influenced by financial profitability in the previous year. Nevertheless, there is an inverse relationship of the moderating effect in the foreign ownership and performance relationship as moderation negatively affects financial profitability and positively affects foreign equity in the firms in our sample.