An Empirical Examination of Factors Determining Capital Structure Indian Micro Scale Industries

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 1

Year of Publication : 2020

Authors : Anantdeep Kaur Maan

10.14445/23939125/IJEMS-V7I1P123

How to Cite?

Anantdeep Kaur Maan, "An Empirical Examination of Factors Determining Capital Structure Indian Micro Scale Industries," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 1, pp. 180-184, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I1P123

Abstract:

The present paper aims to investigate the determinant of capital structure of 40 MSME from four different industrial sectors. The research was conducted from the year 2015 to the year 2019. The present empirical study examines the capital structure determinants across all sectors. Panel Data analysis was conducted by devising STATA. Multiple regression analysis has been conducted. The findings of the study depict that size of a firm and risk level among firms have emerged as the strong determinants affecting the capital structure of firms across all sectors under study. Institutional ownership and Asset structure have been proved the least effective determinants of capital structure across firms. The present study implies that institutional owners of companies that are highly liquid, pay high dividends, and fall under high tax brackets do not rely on debt financing.

Keywords:

Capital Structure, MSME,  Panel Data, STATA

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