Effect of Capital Structure Determinants on Profitability: With Special Reference to Iron and Steel Sector Units of India

ADHYAYAN: A JOURNAL OF MANAGEMENT SCIENCES

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Field Value
 
Title Effect of Capital Structure Determinants on Profitability: With Special Reference to Iron and Steel Sector Units of India
 
Creator Gogia, Neeraj
 
Subject ROCE, Liquidity, Steel Industry, Debt-Equity Ratio, Profitability.
 
Description This paper is an attempt to study the capital structure of Indian Steel Industry and its major determinants. In this study, almost 50% of companies out of 22 sample size are bearing highly debt driven in their capital structure and it creates financial risk to the debt driven companies. Debt driven companies have obligation to pay interest irrespective of profit made or loss incurred by the firms. Hence we tried to find out which are the various factors significantly explaining the return on capital employed. For which we have considered four independent variables from early studies and employed correlation analysis, multiple regression analysis techniques and ANOVA in this study to test the dependency of the return on capital employed ratio on independent variables. The researcher found three variables such as debt equity ratio, operating profit ratio and interest coverage ratio respectively having significant impact on the return on capital employed to ratio of selected sample size of steel companies.
 
Publisher School of Management Sciences
 
Date 2016-12-07
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://myresearchjournals.com/index.php/ADHYAYAN/article/view/7046
10.21567/adhyayan.v6i2.7046
 
Source Adhyayan: A Journal of Management Sciences; Vol 6, No 2 (2016)
2455-8656
2249-1066
 
Language eng
 
Relation http://myresearchjournals.com/index.php/ADHYAYAN/article/view/7046/6295
 

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