Title: Do Indian companies' debt structures reflect debt specialisation?

Authors: Nivya Unni; S. Santhosh Kumar

Addresses: School of Management Studies, Cochin University of Science and Technology, Kerala, India ' School of Management Studies, Cochin University of Science and Technology, Kerala, India

Abstract: This study seeks to examine the debt composition of non-financial companies in India. The study conducts a panel data analysis of 1,915 non-financial firms listed on the National Stock Exchange (NSE) from 2010 to 2023. Debt specialisation is measured using the Herfindahl-Hirschman Index (HHI), Excl 90, cluster analysis, threshold analysis and conditional debt structure. The data are collected from the ProwessIQ-Centre for Monitoring Indian Economy (CMIE) database and the companies' annual reports. The study finds clear evidence of debt specialisation among Indian firms; most companies focus their borrowing on a single type of debt. Cluster analysis results reported that 89% of the sample firms primarily specialise in one kind of debt.

Keywords: debt structure; debt specialisation; Herfindahl-Hirschman Index; HHI; cluster analysis.

DOI: 10.1504/AAJFA.2026.152391

Afro-Asian Journal of Finance and Accounting, 2026 Vol.16 No.2, pp.143 - 155

Received: 25 Jun 2024
Accepted: 14 May 2025
Published online: 18 Mar 2026 *

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