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http://hdl.handle.net/10603/440095
Title: | CAPITAL STRUCTURE IN THE INDIAN CORPORATE SECTOR an INDEPTH STUDY |
Researcher: | RAY, SMITA |
Guide(s): | DAS, K.K. |
Keywords: | Economics and Business higher risk associated with greater Management Social Sciences |
University: | Ravenshaw University |
Completed Date: | 2015 |
Abstract: | In a developing economy, Industrialisation accelerates the economic newlinedevelopment at a faster rate. India is a developing economy. It inherited a newlineweak industrial base and a stagnant economy at the time of independence newlineand development which took its momentum only after independence. A good newlinenumber of new industries like transport, basic chemical, electrical equipment, newlinepower, machine tools etc came up during this period. newlineThe capital structure of a company is a particular combination of debt, newlineequity and other sources of finance that it uses to fund its long-term asset. newlineThe key division in capital structure is between debt and equity. The proportion newlineof debt funding is measured by gearing or leverages. There are different newlinefactors that affect a firm s capital structure, and a firm should attempt to newlinedetermine what its optimal, or best, mix of financing. But determining the newlineexact optimal capital structure is not a science, so after analyzing a number newlineof factors, a firm establishes a target capital structure which it believes is newlineoptimal. Capital structure policy also involves a trade-off between risk and newlinereturn. Using more debt raises the risks in the firm s earnings stream, but a newlinehigher proportion of debt generally leads to a higher expected rate of return newlineand the higher risk associated with greater debt tends to lower the stock s newlineprice. At the same time, however, the higher expected rate of return makes newlinethe stock more attractive to investors, which, in turn, ultimately increases the newlinestock s price. Therefore, the optimal capital structure is the one that strikes a newlinebalance between risk and return to achieve our ultimate goal of maximizing newlinethe stock prices. newline |
Pagination: | all pages |
URI: | http://hdl.handle.net/10603/440095 |
Appears in Departments: | Department of Management |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
01_title.pdf | Attached File | 89.66 kB | Adobe PDF | View/Open |
02_prelim pages.pdf | 114.87 kB | Adobe PDF | View/Open | |
03_content.pdf | 89.26 kB | Adobe PDF | View/Open | |
04_abstract.pdf | 90.48 kB | Adobe PDF | View/Open | |
05_chapter 1.pdf | 6.98 MB | Adobe PDF | View/Open | |
06_chapter 2.pdf | 6.88 MB | Adobe PDF | View/Open | |
07_chapter 3.pdf | 6.95 MB | Adobe PDF | View/Open | |
08_chapter 4.pdf | 7.07 MB | Adobe PDF | View/Open | |
10_annexures.pdf | 6.86 MB | Adobe PDF | View/Open | |
80_recommendation.pdf | 90.48 kB | Adobe PDF | View/Open |
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