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Impact On Capital Structure Decision Making: Indian Medium-Sized Food Industry Analysis

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  • Ansita Aggarwal
  • Satya Ranjan Acharya

    (Entrepreneurship Development Institute of India, India
    Entrepreneurship Development Institute of India, India)

Abstract

This paper seeks to investigate the relationship between equity and factors affecting them in Indian medium-sized food industry. The analysis has been done on medium-sized firms of food industry taken from prowess software. The data of 5 years has been taken from 2013-2017 so as to get a clear view of analysis over the period of time. Regression analysis is used in the estimation of functions related to equity with a measure of capital structure. The results reveal a significant positive relationship of tangible fixed assets and growth opportunities with equity, significant negative relationship of age, profitability, tax provision and total assets with equity. The research suggests that medium-sized food firms of food industry rely more on debt than equity.

Suggested Citation

  • Ansita Aggarwal & Satya Ranjan Acharya, 2019. "Impact On Capital Structure Decision Making: Indian Medium-Sized Food Industry Analysis," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 8(4), pages 47-60.
    • Handle: RePEc:cpn:umkcjf:v:8:y:2019:i:4:p:47-60
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    References listed on IDEAS

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    Cited by:

    1. Rajesh Desai & Jay Desai, 2020. "Moderating Effect Of Firm Size On Capital Structure Determinants: Evidence From Indian Food Processing Industry," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 9(3), pages 61-81.

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