IMPACT ON CAPITAL STRUCTURE DECISION MAKING: INDIAN MEDIUM-SIZED FOOD INDUSTRY ANALYSIS

Ansita Aggarwal, Satya Ranjan Acharya

DOI: http://dx.doi.org/10.12775/CJFA.2019.017

Abstract


This paper seeks to investigate the relationship between equity and factors affecting them in Indian medium-sized food industry. The analysis has been done on medium-sized firms of food industry taken from prowess software. The data of 5 years has been taken from 2013-2017 so as to get a clear view of analysis over the period of time. Regression analysis is used in the estimation of functions related to equity with a measure of capital structure. The results reveal a significant positive relationship of tangible fixed assets and growth opportunities with equity, significant negative relationship of age, profitability, tax provision and total assets with equity. The research suggests that medium-sized food firms of food industry rely more on debt than equity.

Keywords


capital structure; food industry; medium firms; India

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