Capital Structure and Firm Performance: Evidence from Indian Companies Listed on Bombay Stock Exchange

Authors

  • Ranjit Kumar Paswan
     Assistant Professor of Commerce, Kazi Nazrul University, Asansol – 713340, West Bengal

DOI:

https://doi.org/10.15410/aijm/2023/v12i2/173203

Keywords:

Capital Structure, Energy Sector, Financial Performance, Panel Data Analysis

Abstract

The study aims to thoroughly investigate the influence of capital structure on firm performance within the Indian companies belonging to the energy sector by examining a sample of sixteen companies. Data was collected for a period of fifteen years from 2009 to 2023 from the Capitaline Database. The study focused on evaluating the EPS, ROCE, ROE and ROA as the primary indicator of performance measures. In addition, it considered several key capital structure metrices including Total Debt to Equity Ratio (TDEQ), Long-Term Debt to Total Assets (LTDTA) and Short-Term Debt to Total Assets (STDTA). To achieve the objectives, the study employed a range of statistical tools, including descriptive analysis, correlation analysis and regression analysis. The findings from study model 1 indicate that the independent variables TDEQ, LTDTA and STDTA have significant negative impacts on EPS. In model 2, ROCE is negatively influenced by LTDTA and STDTA, while TDEQ is not statistically significant. Model 3 indicates that ROE is significantly affected by LTDTA and STDTA, but TDEQ does not play a significant role. However, model 4 demonstrates that ROA is negatively influenced by both LTDTA and STDTA and TDEQ again not statistically significant.

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Published

2023-12-12

How to Cite

Paswan, R. K. (2023). Capital Structure and Firm Performance: Evidence from Indian Companies Listed on Bombay Stock Exchange. ANVESHAK-International Journal of Management, 12(2), 146–161. https://doi.org/10.15410/aijm/2023/v12i2/173203

Issue

Volume 12, Issue 2, July 2023

Section

Articles
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Europe PMC

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