Department of Management

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    Financial sources, capital structure and performance of social enterprises: empirical evidence from India
    (Taylor & Francis, 2019-05) Tirumalsety, Revendranath
    The paper examines the influence of financial sources on capital structure – operationalised through the ratio of financial debt to total assets – of social enterprises, followed by the relationship between financial debt and performance. Data on income distribution, financial sources, and financial statements are collected from 207 social enterprises in four states of India – Karnataka, Telangana, Maharashtra, and Tamil Nadu – through cluster sampling. Multiple regression and panel data analysis tests are conducted to study the research objectives. The findings indicate social enterprises prefer debt from donors for capital investments over impact investments as well as debt from formal institutions. Furthermore, financial debt has a negative influence on return on capital employed component of social enterprises performance. Financial debt has no influence on financial results and suggests the independence of social enterprises from the funders. Furthermore, social enterprises’ ability to use capital efficiently to generate returns may be negatively affected by the repayment of interest and loans to lenders.
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    Capital Structure and Firm Performance: Empirical Evidence from India
    (Sage, 2016-01) Chadha, Saurabh
    This paper studies the impact of capital structure or financial leverage on firm financial performance. A sample size of 422 listed Indian manufacturing companies on Bombay Stock Exchange (BSE) has been taken to analyze the relationship between leverage and firm performance. A period of 10 years from 2003–2004 to 2012–2013 and annual financial standalone data have been considered to analyze the leverage effect. Ratio analysis and panel data approach have been applied to perform the empirical study. Return on asset, return on equity and Tobin’s Q are used as the proxy for measuring the firm’s financial performance. It was found that financial leverage has no impact on the firm’s financial performance parameters of return on asset and Tobin’s Q. However, it is negative and significantly correlated with return on equity. Other independent variables like size, age, tangibility, sales growth, asset turnover and ownership structure are significant determinants of a firm’s financial performance in the Indian manufacturing sector. Thus, the findings of the study would enhance the literature on capital structure and is relevant for the Indian manufacturing industry in taking its capital structure decisions as it is based on the most recent data and covers the period of both pre- and post-recession of 2008–2009. There is an adverse effect of recession on the financial performance of the Indian manufacturing firms.
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    Determinants of capital structure: an empirical evaluation from India
    (Emerald, 2015-05) Chadha, Saurabh
    The purpose of this paper is to study the key determinants of capital structure for Indian manufacturing firms and which theory implications, i.e. trade vs. pecking order are more applicable in the current Indian manufacturing sector scenario.
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    Ownership structure and capital structure: a panel data study
    (Inder Science, 2021-03) Chadha, Saurabh
    Capital structure and ownership structure are two important concerns of overall firm's management. This paper studies the impact of ownership structure on the capital structure of the Indian manufacturing firms. The sample with a size of 1,150 manufacturing firms listed on Bombay Stock Exchange (BSE) of India and period of ten years from 2007 to 2016 has been deployed for purpose of the study. Panel data fixed effect model has been applied to test the relationship between capital structure and corporate governance factors. It was found that the ownership structure affects the capital structure decisions of the Indian manufacturing firms. Likewise, control variables like tangibility, age, growth, profitability and size are found to be significantly correlated with the firm's financial leverage. Thus, the findings of the study would enrich the literature on capital structure and comprehend the importance of ownership structure for the management of long-term funds.