Choices and Determinants of Capital Structure: An Empirical Study of Firms Listed in BSE (India)

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Dr. MD.S.Rahaman, et. al.

Abstract

This examination is meant to explore the capital structure determinants of Indian firms listed in BSE for the period from 2011 to 2020. A panel data set of 125 (1250 observations) firms for the last decade time frame is accumulated yearly monetary reports of firms listed at BSE. The analysis uses the POT and TOT in discovering the determinants of capital structure and their influence on the capital structure choices. The influencing factors of size, nature, Profitability, growth, and risk are considered to speak to the effect on dependent variable. The results of the examination show that the size of the firm and risk involved in the specific business are emphatically identified with capital structure. The profitability, growth and nature of the firm in which the firm is operating are adversely influencing the capital structure. The aftereffect of firm size (assets) is reliable with the TOT and consequently profitability is predictable with the POT.

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