Determinants of capital structure of aluminium industry in India: a post liberalisation period analysis
by Sarbapriya Ray
International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE), Vol. 8, No. 4, 2012

Abstract: This study attempts to examine the influence of six determinants on capital structure - asset collateral, life of firm, business risk, growth rate, profitability, non-tax shield - of listed aluminium companies of India for the 17 years from 1991-1992 to 2007-2008. The result reveals that the major determinants of capital structure in Indian aluminium industry are tangibility, profitability, life, growth, volatility and non-debt tax shield (NDTS). The asset composition, life and growth are found to have a statistically positive relationship with debt-equity ratio which supports many earlier research findings and profitability and NDTS have significant negative relations with leverage. But, only one factor, volatility, does not seem to have any significant impact on capital structure.

Online publication date: Wed, 30-Jul-2014

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