Capital Structure Theories and its Practice, A study with reference to select NSE listed public sectors banks, India
Among the various factors affecting the firms positioning and performance in modern day markets, capital structure of the firm has its own way of expressing itself as a crucial one. With the rapid changes in technology, firms are being pushed onto a paradigm that is burdening the capital management process. Hence the study of capital structure changes gives the investors an insight into firm's behavior and intrinsic goals. These changes will vary for firms in different sectors. This work considers the banking sector, which has a unique capital structure for the given regulations of its operations in India. The capital structure behavioral changes in a few public sector banks are studied in this paper. A theoretical framework has been developed from the popular capital structure theories and hypotheses are derived from them accordingly. The main idea is to validate different theories with real time performance of the select banks from 2011 to 2022. Using statistical techniques like regression and correlation, tested hypotheses have resulted in establishing the relation between debt component and financial performance variables of the select banks which are helping in understanding the theories in practice.
Code (0)
등록된 구현이 없습니다.
Tasks
ManagementSimilar Papers 제목 키워드 기반
Impact of interpersonal influences on Employee engagement and Psychological contract: Effects of guanxi, wasta, jeitinho, blat and pulling strings
This study puts forward a conceptual model linking interpersonal influences' impact on Employee Engagement, Psychological contracts, and Human Resource Practices. It builds on human and social capital, as well as the soc…
Regret Theory And Asset Pricing Anomalies In Incomplete Markets With Dynamic Un-Aggregated Preferences
Although the CML (Capital Market Line), the Intertemporal-CAPM, the CAPM/SML (Security Market Line) and the Intertemporal Arbitrage Pricing Theory (IAPT) are widely used in portfolio management, valuation and capital mar…
ManagementA risk management approach to capital allocation
The European insurance sector will soon be faced with the application of Solvency 2 regulation norms. It will create a real change in risk management practices. The ORSA approach of the second pillar makes the capital al…
ManagementOptimal exit decision of venture capital under time-inconsistent preferences
This paper proposes two kinds of time-inconsistent preferences (i.e. time flow inconsistency and critical time point inconsistency) to further advance the research on the exit decision of venture capital. Time-inconsiste…
A Re-Examination of the Foundations of Cost of Capital for Regulatory Purposes
In regulatory proceedings, few issues are more hotly debated than the cost of capital. This article formalises the theoretical foundation of cost of capital estimation for regulatory purposes. Several common regulatory p…