The Debt - Equity Choice- An Empirical Analysis of Indian Companies

Abstract

Debt-equity choice is one o f the most important decisions in financing policy. Studies on capital structure have made great contributions in understanding the behavior o f firms with respect to their choice among the use o f debt or equity. The present study analyses the financing pattern o f300 Indian private sector companies, comprising o f 20 different sectors fo r the period 1999-2000 to 2007-2008, duly grouping them on the basis o f their region, size, age, and nature.