Capital Structure and Factors Affecting Capital Structure

Authors

  • BHADRAPPA HARALAYYA HoD and Associate Professor, Department of MBA, Lingaraj APPA, Engineering College Bidar, Karnataka, India.
  • Jeelan Basha V Dean and Professor of Commerce, Vijayanagara Sri Krishnadevaraya University, Bellary, Karnataka, India.
  • Nitesh S Vibhute Assistant Professor, Faculty of Business Studies MBA, Sharnbasva University, Karnataka, India.

Keywords:

Capital Structure, Financial Leverage, Business Risk, Tangibility, Profitability

Abstract

Capital structure decisions are perhaps one of the most important decisions taken by financial managers. It is one of the important and challenging issues in corporate finance. What should be the appropriate mix of debt and equity in capital structure. The answer to this question has been debated in different literatures pertaining to capital structure by different researchers. The enormous work in this area by different researchers has tried to investigate of optimal capital structure exists or not, which will help in maximization of the wealth of the shareholders. The optimal mix of debt and equity in capital structure will help in maximization the returns for the shareholders, while minimizing the cost of capital. Decisions relating to optimal combination of debt and equity have always raised the inquisitiveness of different researchers all over the globe.

References

Vibhute NS, Jewargi CB, Haralayya B. Study on Non-Performing Assets of Public Sector Banks. Iconic Research And Engineering Journals 2021 ; 4(12): 52-61.

Jeelan B, Haralayya B. Performance Analysis of Financial Ratios - Indian Public Non-Life Insurance Sector 2021.

Haralayya B. Testing Weak Form Efficiency of Indian Stock Market - An Empirical Study on NSE, Emerging Global Strategies for Indian Industry, 2021.

Vinoth S, Vemula HL, Haralayya B et al. Application of cloud computing in banking and e-commerce and related security threats, Materials Today: Proceedings, 2021.

Jeelan BV. Financial Performance Analysis of Post-Merger or Acquisition. International Journal of Business and Administration Research Review 2016; 1(1).

Jeelan BV. Empirical Study on Estimation of Value using Constant Dividend Growth (Gordon) Model: With Special Reference to Selected Companies. International Journal of Management and Social Sciences Research 2014.

Jeelan BV. Empirical Study on Determinants of Foreign Exchange Rates with Reference to Indian Rupee v/s US Dollar. International Journal of Business and Administration Research Review 2015; 2(10).

Jeelan BV. An Empirical Study on Relationship between Future and Spot Price. International Journal of Current Research 2016; 8(6): 33775-33779.

Jeelan BV. A Study on Private placement - A Key to Primary Market (April 1, 2015). International Multidisciplinary E-Journal 2015.

Jeelan BV. Examination of GARCH Model for Determinants of Infosys Stock Returns. International Journal of Current Research 2015; 7(12): 24811-24815.

Jeelan BV. Impact of Buyback Announcements on Stock Market in India. Global Journal for Research Analysis 2015.

Jeelan BV. An Empirical Study on Analysis of Stock Brokers in Indian Stock Markets with Special Reference Cash Market. Indian Journal of Applied Research 2014.

Jeelan BV. Performance Evaluation of Mutual Funds with Special Reference to Selected Schemes. International Journal of Current Research 2015; 7: 4: 15316-15318.

Jeelan BV. Wealth Maximization: An Empirical Analysis of Bonus Shares and Right Issue. Indian Journal of Applied Research 2014.

Jeelan BV. Forecasting Imports of India Using Auto-regressive Integrated Moving Average. International Journal of Business and Administration Research Review 2015.

Jeelan BV. Comparative Study on NPAs (With Special Reference to Scheduled Commercial Banks, Public Sector Banks and Foreign Banks in India). Global Journal for Research Analysis 201.

Jeelan BV. Testing for Granger Causality between BSE Sensex and Forex Reserves: An Empirical Study. International Journal of Current Research 2015; 7(11): 23381-23385.

Jeelan BV. A Study on Type and Method of Issues - A Corner Stone of Primary Market. International Journal of Business and Administration Research Review 2015.

Published

2022-02-21

How to Cite

BHADRAPPA HARALAYYA, Jeelan Basha V, & Nitesh S Vibhute. (2022). Capital Structure and Factors Affecting Capital Structure. Journal of Advanced Research in Economics and Business Management, 4(2), 4-35. Retrieved from https://adrjournalshouse.com/index.php/Journal-Economics-BusinessMgt/article/view/1408