INDIAN AUTOMOBILE INDUSTRY - A STUDY ON ITS CAPITAL STRUCTURE

  • Unique Paper ID: 158521
  • Volume: 9
  • Issue: 9
  • PageNo: 680-684
  • Abstract:
  • Financial decisions are the most important decisions since they affect Risk and return of the shareholders. Decisions relating to the capital structure form vital among all financial decisions. This study is an attempt to analyse the determinants of the capital structure of Indian Automobile industry. Sample of the study consists of ten companies of Indian Automobile industry. Selection of companies is based on debt-equity ratio and the data availability 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 2005-2006 to 2020-2021. 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, six variables viz., ‘return on equity’, ‘size’, ‘dividend pay-out ratio’, ‘effective tax rate’, ‘cost of equity’, and ‘cost of debt’ are the most significant factors that influence debt-equity ratio.

Cite This Article

  • ISSN: 2349-6002
  • Volume: 9
  • Issue: 9
  • PageNo: 680-684

INDIAN AUTOMOBILE INDUSTRY - A STUDY ON ITS CAPITAL STRUCTURE

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