A Study On The Capital Structure Performance Of Indian Firms With Special Reference To BSE-500

Abstract

Purpose – This research aims to identify and analyze the various determinants of capital structures in the emerging (Indian) market.

Design/methodology/approach – In this report, the data used are a compilation of data from the business and accounting data of 1021 Indian companies from 2009 to 2019, both private sector and government companies. The balance sheets and financial statements are taken from accounting records. The data’s are subsequently use to analyze variables that assess the company's growth likelihood, tangibility, profitability, scale and liquidity.

Findings – The results show that the determinants of the capital structure vary for long-term and short-term indicators.

Research limitations – This research work analyses the capital structure determinants of selected 1021 organizations only and is also available for other businesses. Banks are therefore exempt from the sample and are prepared for future studies.

Practical implications – The findings may enable financial managers to determine the capital structure of their companies so that they can establish strategies that fit the situation on the market.