Does Ownership Structure affect Capital Structure? An Empirical Investigation of Indian Firms

Sharma, Lakshmi (2005) Does Ownership Structure affect Capital Structure? An Empirical Investigation of Indian Firms. TAPMI, Manipal.

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Abstract

This paper looks at the cross sectional variations in the capital structure of Indian firms from the ownership structure perspective, viewing it as shareholding by promoters and shareholding by institutional investors. This study finds that the promoters’ shareholding is inversely related to the debt ratio and this relationship is found to be statistically significant. The institutional investors’ shareholding is not found to be a statistically significant variable in explaining the variations in the level of debt used by the sample firms. The firm specific variables which are found to be significant determinants of the debt usage are firm size, growth, profitability, level of tangible assets held, free cash flows, business risk and growth opportunities.

Item Type:	TAPMI Working Papers
Uncontrolled Keywords:	Capital Structure; Indian Firms;
Subjects:	General Management
Divisions:	Finance and Strategy
Depositing User:	Ms. Vanitha K
Date Deposited:	16 Nov 2018 10:12
Last Modified:	20 Nov 2018 09:13
URI:	http://tapmi.informaticsglobal.com/id/eprint/346

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