Journal
| Title | Capital Structure of Indian Corporate: Changing Trends | |
| Author's Name | Ashok Kumar Panigrahi | |
| ISSN | 0974-7281 | |
| Page(s) | 17-32 | |
| Volume No. | 3 | |
| Issue Month | January 2011 | |
| Keywords | Capital Structure, Liberalization, Leverage, Indian Corporate, Private sector JEL Classification: G32 | |
| Abstract | The financing pattern of capital structure is becoming more and more important in the changing world of modern business. There are very strong pressures from the stakeholders to maximize their returns in the short-run and long-run. Thus the capital structure of company has emerged as a debatable global issue among the finance and accounting professionals and research scholars to fulfill the need of harmonization of corporate equity financing throughout the world. After the liberalization of Indian economy, the research on company finance, particularly aimed at understanding how companies finance their activities and why they finance their activities in these specific ways has gone up. The present study is aimed at to find out the trend and pattern of financing by the Indian companies before and after the liberalization. An attempt is made to compare and contrast the capital structure of Indian corporate before and after liberalization. The impact of liberalization and changes if any noticed due to liberalization, on the capital structure of Indian companies is examined. Effort is also made to analyze the capital structure decisions of Indian companies in the recent past. The financing pattern of 300 Indian private sector companies, comprising of 20 different sectors for the period 1999-2000 to 2007-2008 is analyzed after grouping them on the basis of their region, size, age, and nature by using the tools like funds flow analysis, ratio analysis and correlation analysis. |
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