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Determinants Of Capital Structure – A Sector Specific Approach

Author

Listed:
  • Amit Hedau

    (SRM University AP Amaravati)

  • Shailender Singh

    (SRM University AP Amaravati)

  • Huwati Janor

    (University Kebangsaan Malaysia)

Abstract

To achieve the objective of wealth maximization, capital structure of the firm has momentous role. Apart from qualitative factors like economic condition, political & social status and management approach, quantitative factors like profitability, sales, depreciation and few more financial variables determine and influence the capital structure of the firm. This paper deals with the analysis of similarities and dissimilarities of determinants of capital structure among different sectors of Indian capital market using data from 2008 to 2018. OLS regression model is used to decompose the influence of explanatory variable on debt to equity ratio, which is dependent variable. The present paper is among very few research works focusing on different sectors individually, at least with reference to Indian capital market. The findings of paper confirm the presence of sector-specific determinants of capital structure in Indian capital market. The paper has its implication in the field of finance in terms of extending the understanding about variation of factors influencing capital structure of companies from different sectors

Suggested Citation

  • Amit Hedau & Shailender Singh & Huwati Janor, 2018. "Determinants Of Capital Structure – A Sector Specific Approach," Romanian Economic Business Review, Romanian-American University, vol. 13(4), pages 14-30, december.
    • Handle: RePEc:rau:journl:v:13:y:2018:i:4:p:14-30
    as

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    References listed on IDEAS

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