Title: A study of capital structure of Indian manufacturing small and medium consumer goods enterprises

Authors: Sunit Prasad; Rohini Jha; Amar Nath Jha

Addresses: Department of Humanities and Management, Birla Institute of Technology, Mesra Off-Campus, Deoghar, Jharkhand, India ' Department of Management, Birla Institute of Technology, Mesra, Ranchi, Jharkhand, India ' Birla Institute of Technology, Mesra, Ranchi, Jharkhand, India

Abstract: Researchers worldwide have noted that SMEs confront serious financial management challenges that jeopardise their viability. How to finance their ventures is an issue that Indian SMEs are facing. Their personal funds and short-term debt play a major role in the current funding scenario. To comprehend the financial behaviour of Indian SMEs (especially those in the consumer goods industry), this study focuses on firm-specific determinants influencing the capital structure. Stagnant growth and the annual increase in sick units are the main reasons for selecting a given industry; more crucially, the financial behaviour of a particular SME business has not been examined more frequently. Panel data regression is used to assess the effect of firm-specific determinants on the capital structure of the setup for the period 2006-2017. The sample consists of 244 active non-financial functioning enterprises. Based on their operational demands, entrepreneurs select the inappropriate financing ratio, according to the findings.

Keywords: Indian SMEs-specific industry; firm-specific factors; capital structure; panel data regression; consumer goods industry.

DOI: 10.1504/IJICBM.2026.151834

International Journal of Indian Culture and Business Management, 2026 Vol.37 No.2, pp.202 - 228

Received: 07 Jan 2024
Accepted: 27 Jan 2024
Published online: 23 Feb 2026 *

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