Impact of Firm Size on Leverage: An Empirical Study of Companies Listed on NSE of India

Ebrahim Hallajian; Mostafa Hashemi Tilehnouei

Volume : V, Issue : V, May - 2016

Impact of Firm Size on Leverage: An Empirical Study of Companies Listed on NSE of India

Ebrahim Hallajian, Mostafa Hashemi Tilehnouei

Abstract :

The purpose of this paper is to provide an illustrative proof for effect of firm size on leverage. It will be expected that larger firms generally to have higher debt ratios. 139 firms from 13 economic sectors listed on National Stock Exchange of India were selected for this study. According to the empirical results, firm size does not have a significant effect on leverage of Indian firms, but it�s effect for some sectors such as Energy, Chemicals and Fertilizers, Textiles, FMCG and Consumer Durables is positive and significant.