Determinants of Capital Structure of Indian Pharmaceutical Industry
- Author S. Hemaprasanna
- DOI
- Country : India
- Subject : commerce
Keywords : Capital structure, Debt-equity ratio, Solvency ratio, liquidity, financial decisions
Abstract
In finance, capital structure decisions are vital financial decisions and indecisiveness on the capital structure may lead to financial distress and eventually to bankruptcy. This study examines the factors that determine the capital structure of Indian Pharmaceutical industry. Sample of the study consists of ten companies of Indian pharmaceutical industry. The companies have been selected on the basis of debt-equity ratio and the availability of data for the period of study. The data used are secondary in nature and it has been collected from ACE Equity database for a period of sixteen years from 1998-1999 to 2013-2014. Correlation, Regression and Step wise regression were the statistical tools used for the analysis of the data. The results of the study indicate that among the sixteen variables, two variables namely Solvency ratio and liquidity are the prominent variables which determine the capital structure of Indian Pharmaceutical industry.
Comments
No have any comment !