An empirical study on the determinants of capital structure in Indian Cement Industry in Pre and Post period of Recession

Abstract

In this study an attempt has been made to examine the determinants of capital structure in companies belonging to the Indian Cement Industry during Pre and Post Recession period. To study the influence of various independent variables on the capital structure, Multiple Regression Analysis has been carried out taking the “ratio of average total debt to average total assets” as dependent variable and seven variables, which might have some impact on the capital structure, as independent variables. These seven variables are namely “Business risk”, “Size of the firm”, “Growth rate”, “Debt service capacity”, “Degree of operating leverage”, “Dividend payout”, and “Earning rate”.