IDEAS home Printed from https://ideas.repec.org/a/sae/padigm/v18y2014i1p35-50.html
   My bibliography  Save this article

Determinants of Corporate Financial Performance Relating to Capital Structure Decisions in Indian Iron and Steel Industry

Author

Listed:
  • Arindam Banerjee
  • Anupam De

Abstract

This study is basically undertaken so as to investigate the independent variables on which the dependent variable, i.e., the profitability depends upon for the firms belonging to the Indian iron and steel industry. The nine independent variables taken into consideration for the study which might have some impact on the profitability of the Indian iron and steel industry are “business risk†, “size of the firm (log(sales))†, “growth rate†, “debt service capacity (interest)†, “dividend payout†, “financial leverage†, “degree of operating leverage†, “firm’s age†and “size of the firm (log(assets))†. The above variables determining the capital structure of a firm have been taken into consideration after a thorough literature review. It is observed from the study that “financial leverage†, “debt service capacity (interest)†and “size of the firm (log assets)†are significant factors influencing the profitability of the firms of the Indian iron and steel industry. In this study, a further attempt has been made to examine the determinants of financial performance for companies belonging to the Indian iron and steel industry during the pre- and post-recession periods.

Suggested Citation

  • Arindam Banerjee & Anupam De, 2014. "Determinants of Corporate Financial Performance Relating to Capital Structure Decisions in Indian Iron and Steel Industry," Paradigm, , vol. 18(1), pages 35-50, June.
  • Handle: RePEc:sae:padigm:v:18:y:2014:i:1:p:35-50
    DOI: 10.1177/0971890714540365
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0971890714540365
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0971890714540365?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ayberk Nuri Berkman & Omer Iskenderoglu & Erdinc Karadeniz & Nazif Ayyildiz, 2016. "Determinants of Capital Structure: The Evidence from European Energy Companies," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 7(6), pages 96-106, November.
    2. repec:kap:iaecre:v:13:y:2007:i:4:p:495-514 is not listed on IDEAS
    3. Kinga Mazur, 2007. "The Determinants of Capital Structure Choice: Evidence from Polish Companies," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(4), pages 495-514, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Barnali Chaklader & Deepak Chawla, 2016. "A Study of Determinants of Capital Structure through Panel Data Analysis of Firms Listed in NSE CNX 500," Vision, , vol. 20(4), pages 267-277, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aamer Shahzad & Muhammad Azeem & Mian Sajid Nazir & Xuan Vinh Vo & Nguyen T. M. Linh, 2021. "The determinants of capital structure: Evidence from SAARC countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 6471-6487, October.
    2. James Agyei & Shaorong Sun & Eugene Abrokwah, 2020. "Trade-Off Theory Versus Pecking Order Theory: Ghanaian Evidence," SAGE Open, , vol. 10(3), pages 21582440209, July.
    3. Andreas Kaloudis & Dimitrios Tsolis, 2019. "Capital Structure and Speed of Adjustment in U.S. Firms. Α Comparative Study in Microeconomic and Macroeconomic Conditions-A Quantile Regression Approach," International Business Research, Canadian Center of Science and Education, vol. 12(10), pages 98-109, October.
    4. Jacek Jaworski & Leszek Czerwonka, 2021. "Determinants of Enterprises’ Capital Structure in Energy Industry: Evidence from European Union," Energies, MDPI, vol. 14(7), pages 1-21, March.
    5. Rana El Bahsh & Ali Alattar & Aziz N. Yusuf, 2018. "Firm, Industry and Country Level Determinants of Capital Structure: Evidence from Jordan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 175-190.
    6. Powel Maxwell Worimegbe & Agbaje Ifedayo, 2020. "Corporate Rebranding And Customers Retention. A Study Of Selected Telecommunication Firm In Nigeria," Cactus - The tourism journal for research, education, culture and soul, Bucharest University of Economic Studies, vol. 2(1), pages 17-25.
    7. Jason Stephen Kasozi, 2018. "Capital Structure and The Profitability of Listed Retail Firms," Journal of Economics and Behavioral Studies, AMH International, vol. 10(1), pages 171-181.
    8. Gabriela Brendea & Fanuta Pop & Loredana Mihalca, 2022. "Capital Structure and Firm Performance: The Case of Central and Eastern European Economies," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(5), pages 430-449, May.
    9. Natalia Szomko, 2017. "The Importance of Estimation Method Choice for the Analysis of the Determinants of Capital Structure– An Example of Poland," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 3(1), pages 3-20, June.
    10. Geoffroy Enjolras & Gilles Sanfilippo, 2018. "The role of debt in financing French farm investments," Post-Print hal-02048362, HAL.
    11. Pavlína Pinková & Sylvie Riederová, 2013. "Inter- and intra-industry variations of capital structure in the Czech manufacturing industry," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(7), pages 2623-2629.
    12. Michał Bernardelli & Leszek Mosiejko, 2019. "Analysis of the capital structure of companies traded on the Warsaw Stock Exchange in terms of the pecking order theory," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 55, pages 25-40.
    13. Jędrzejczak-Gas Janina, 2017. "Determinants of the capital structure of TSL sector enterprises," Management, Sciendo, vol. 22(1), pages 122-139, September.
    14. Georgeta Vintilă & Ştefan Cristian Gherghina & Diana Alexandra Toader, 2019. "Exploring the Determinants of Financial Structure in the Technology Industry: Panel Data Evidence from the New York Stock Exchange Listed Companies," JRFM, MDPI, vol. 12(4), pages 1-16, October.
    15. Huu Manh Nguyen & Thi Huong Giang Vuong & Thi Huong Nguyen & Yang-Che Wu & Wing-Keung Wong, 2020. "Sustainability of Both Pecking Order and Trade-Off Theories in Chinese Manufacturing Firms," Sustainability, MDPI, vol. 12(9), pages 1-25, May.
    16. Arindam Banerjee & Anupam De, 2015. "Impact of Capital Structure Decisions on Financial Performance during Pre- and Post-recession Period," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 40(1-2), pages 176-193, February.
    17. Justyna Franc-Dabrowska, 2009. "Does Dividend Policy Follow the Capital Structure Theory?," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(4), pages 367-382.
    18. Aleksandra Stoiljković & Slavica Tomić & Bojan Leković & Milenko Matić, 2022. "Determinants of Capital Structure: Empirical Evidence of Manufacturing Companies in the Republic of Serbia," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    19. Paulo Maçãs Nunes & Zélia Serrasqueiro, 2017. "Short-term debt and long-term debt determinants in small and medium-sized hospitality firms," Tourism Economics, , vol. 23(3), pages 543-560, May.
    20. Sultan Sikandar Mirza & Khalil Jebran & Yu Yan & Amjad Iqbal, 2017. "Financing behavior of firms in tranquil and crisis period: Evidence from China," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1339770-133, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:padigm:v:18:y:2014:i:1:p:35-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.