Author : Dr. Nirmala J 1
Date of Publication :5th January 2021
Abstract: Appropriate capital structure pave the way for taking decisions with regard dividend policy and goodwill of the company. Further expansion and diversification activities will be carried out systematically with the support of capital structure. A study on determinants of capital structure is an empirical analysis of select sectors related companies listed in Bombay Stock Exchange. As it mainly depends on secondary data, the researcher has collected data from Capitaline Database. The source of data has been collected for a period of 5 years from 2011 to 2015. The study is analytical analysis in nature. As far as companies are concerned, the researcher has chosen 89 companies from 10 sectors by examining market capitalization. The researcher conducted the second test by applying the dynamic target adjustment model ascertained by the capital structure determinants. The model used to test whether the determinants adjust positively or negatively towards the target leverage. Thirteen independent variables were considered in the multiple regression tests. From the findings of the analysis the researcher concludes that there is a significant relationship with leverage and variables.
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