The Influence of Determinants on Capital Structure Decision of Select Food Processing Firms in India

ICIMP-2018 | SPECIAL ISSUE | SEP-2018 | Published Online: 03 October 2018    PDF ( 227 KB )
Author(s)
Dr. (Mrs) Thulasi Priya.B 1; Ms. Pavithra.P 2

1Assistant Professor, Dept Of Commerce And PSGR Krishnammal College For Women, Peelamedu, Coimbatore, TN (India)

2Ph.D Research Scholar, Dept Of Commerce And PSGR Krishnammal College For Women, Peelamedu, Coimbatore,TN (India)

Abstract

Capital structure is one of the most important areas of financial decision making. Identifying the right proportion of debt and equity of capital structure has been much difficult to bring favorable results for the organization. This study is attempted to analyze the determinants of capital structure of select food processing firms in India. The study is based on secondary data. Five food processing firms were taken for the study period of 2013-2014 to 2017-2018. Correlation, multiple regression and ANOVA tools has been applied to analyze the objective. The study concludes that the determinants of food processing firms are moderately influencing the capital structure.

Keywords
Capital structure, Determinants, Debt Equity Ratio, Current ratio, Non Debt Tax Shield, Profitability, Tangibility
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