Liquidity plays a significant role in the successful functioning of a business firm. A firm should ensure that it does not suffer from lack-of or excess liquidity to meet its short-term compulsions. A study of liquidity is of major importance to both the internal and the external analysts...

Background: Since the liberalization of Indian economy, there has been an upsurge in research on company finance, particularly aimed at understanding how companies finance their activities and why they finance their activities in these specific ways. In practice, it is observed that finance...

Factors influencing capital structure of a firm is a debatable issue which has engaged academicians for decades. Several theories have been put forward on this subject, after the landmark studies of Modigliani and Miller (1958, 1963) that established capital structure irrelevance and tax shield...

Background: Since the liberalization of Indian economy, there has been an upsurge in research on company finance, particularly aimed at understanding how companies finance their activities and why they finance their activities in these specific ways. In practice, it is observed that finance...

Capital structure of a firm is determined by various internal and external factors. The macro variables of the economy of a country like tax policy of government, inflation rate, capital market condition, are the major external factors that affect the capital structure of a firm. The...

Background: While there may be a lack of consensus on exactly what drives the capital structure decision, there is no lack of alternative hypotheses. One of these theories, capital structure life stage theory, is conspicuously underdeveloped. Although mentioned in text-books (Damodaran, 2001),...

The present study is aimed at to examine the reason of existence of the inter-firm and inter-industry differences in the capital structure of Indian firms and to identify the possible sources of such variation in capital structure. We propose to analyze the financing pattern of 300 Indian...

Debt-equity choice is one of the most important decisions in financing policy. Studies on capital structure have made great contributions in understanding the behavior of firms with respect to their choice among the use of debt or equity. The present study analyses the financing pattern of 300...

The purpose of this paper is to investigate empirically the existence of inter- industry differences in the capital structure of Indian firms and to identify the possible implications of such variation in capital structure. We have studied the financing pattern of 300 Indian private sector...

Background: In spite of many years of rigorous exploration and several papers after Modigliani and Millers’ original work, surprisingly there is an absence of agreement even today among the finance specialists on the fundamental issue of corporate finance, concerning why finance managers...