Firm-Specific and Macroeconomic Determinants of Capital Structure: An Empirical Study of Indian Companies
Author(s): Mr. B. S. RAO
Publication #: 2509018
Date of Publication: 10.08.2025
Country: India
Pages: 1-8
Published In: Volume 11 Issue 4 August-2025
Abstract
This research examines the factors influencing capital structure decisions among Indian industries from 2011 to 2017. Applying multiple regression models to panel data, the study assesses the validity of prominent capital structure theories in the Indian economic context. The results establish that agency costs, asset structure, non-debt tax shields, and firm size are significant determinants of leverage, with coefficients significant at the 1% or 5% level. These findings contribute to the understanding of corporate financing behavior in emerging markets and highlight the factors most critical to capital structure selection in India.
Keywords: Determinants, capital structure, agency cost coefficients, variables.
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