Abstract:

This research looks at how the capital structure of Indian enterprises was impacted by the Global Financial Crisis, specifically how its susceptibility altered and which variables had a stronger influence on the capital structure at that time. Initial data suggests that corporations in India use a wide range of capital structure methods, which likely reflects differences across sectors and business sizes. Capital structure decisions are strongly influenced by factors including profitability, tangibility of assets, business risk, tax concerns, growth potential, and firm-specific features. Financial structure choices in India are also found to be influenced by regulatory and institutional issues such government laws, industry rules, and access to financial markets. The qualitative section of the research sheds light on the factors that go into Indian companies' capital structure decisions. The results of this study have relevance for both academics and professionals in the business world. This research adds to the current academic literature on capital structure by focusing on the distinctive institutional and regulatory environments of the Indian business sector. The findings have important practical implications for financial managers, regulators, and investors, since they provide light on the tradeoffs inherent in various capital structure options and associated financial strategies

Description:

Capital Structure, Indian Corporate Firms, Global Financial Crisis, business risk, tax concerns