Dynamics of capital structure and firm value of Indian listed firms: a PLS-SEM approach
by Shikha Bhatia; Nidhi Singh
International Journal of Indian Culture and Business Management (IJICBM), Vol. 24, No. 1, 2021

Abstract: The present study examines the determinants of capital structure and evaluates their direct and indirect effect on firm value. Data over the financial years 2013 to 2017 was considered for the present analysis, resulting in a dataset of 5,445 firm-year observations for 1,089 firms for five years. We used pooled panel data for analysis using PLS-SEM approach. Our results explain the significant influence of nature of assets and firm's growth on capital structure decisions. The most significant variables that influence firm's value were seen to be firm's growth followed by firm's size. We also found a negative association between firm's leverage and its value. Results of the present study can be used to identify predictors of firm's leverage decisions that influence value of the firm.

Online publication date: Mon, 04-Oct-2021

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Indian Culture and Business Management (IJICBM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com