Volume : IV, Issue : VI, June - 2014

Key Factors Influencing Capital Structure Decision of Indian Computer Software Industry

Mr. N. Suresh Babu, Prof. G. V. Chalam

Abstract :

This study aims to determine the influence of various firm level characteristics such as, profitability, size, growth opportunities, asset tangibility, non–debt tax shield, risk (volatility) and liquidity on capital structure. The data was taken from secondary data source named as “Industry; financial aggregates and ratios” (PROWS) of center for monitoring Indian economy (CMIE) covering the period from 1997–98 to 2010–11 (14 years). The regression results show that profitability, size, growth and liquidity are positively and insignificantly related to leverage. Also asset tangibility, risk and non–debt tax shield has a negative relationship with leverage, which is insignificant. This result generally consisting with pecking order theory (POT) predictions as well as previous research papers.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Mr. N.Suresh Babu, Prof. G.V.Chalam Key Factors Influencing Capital Structure Decision of Indian Computer Software Industry Indian Journal of Applied Research, Vol.IV, Issue.VI June 2014

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