IDEAS home Printed from https://ideas.repec.org/a/taf/jsustf/v11y2021i1p27-46.html
   My bibliography  Save this article

Financial sources, capital structure and performance of social enterprises: empirical evidence from India

Author

Listed:
  • Revendranath Tirumalsety
  • Anjula Gurtoo

Abstract

The paper examines the influence of financial sources on capital structure – operationalised through the ratio of financial debt to total assets – of social enterprises, followed by the relationship between financial debt and performance. Data on income distribution, financial sources, and financial statements are collected from 207 social enterprises in four states of India – Karnataka, Telangana, Maharashtra, and Tamil Nadu – through cluster sampling. Multiple regression and panel data analysis tests are conducted to study the research objectives. The findings indicate social enterprises prefer debt from donors for capital investments over impact investments as well as debt from formal institutions. Furthermore, financial debt has a negative influence on return on capital employed component of social enterprises performance. Financial debt has no influence on financial results and suggests the independence of social enterprises from the funders. Furthermore, social enterprises’ ability to use capital efficiently to generate returns may be negatively affected by the repayment of interest and loans to lenders.

Suggested Citation

  • Revendranath Tirumalsety & Anjula Gurtoo, 2021. "Financial sources, capital structure and performance of social enterprises: empirical evidence from India," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 11(1), pages 27-46, January.
    • Handle: RePEc:taf:jsustf:v:11:y:2021:i:1:p:27-46
    DOI: 10.1080/20430795.2019.1619337
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/20430795.2019.1619337
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/20430795.2019.1619337?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Muhammad Sualeh Khattak & Muhammad Anwar & Thomas Clauß, 2021. "The Role of Entrepreneurial Finance in Corporate Social Responsibility and New Venture Performance in an Emerging Market," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 30(2), pages 336-366, September.
    2. Wesemann, Henrik & Antretter, Torben, 2023. "Why don’t you like me? Exploring the social venture funding gap in angel investing," Journal of Business Venturing Insights, Elsevier, vol. 20(C).
    3. Xhelil Bekteshi & Sevdie Alshiqi & Arbana Sahiti Ramushi, 2021. "The Impact Of Corporate Social Responsibility And Working Capital Management On Smes Performance During A Pandemic," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 7(5).

    More about this item

    Statistics

    Access and download statistics

    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:taf:jsustf:v:11:y:2021:i:1:p:27-46. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TSFI20 .

    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.