Volume No. :   10

Issue No. :  2

Year :  2019

ISSN Print :  0976-495X

ISSN Online :  2321-5763


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Determinants of Capital Structure - An Evidence from Indian BFSI Sector



Address:   Mekha P. G1, Lakshmi Sai. M2, Suresha B3
1Student, MBA Finance Management, Department of Management Studies, Christ (Deemed to be University), Bangalore,
2Student, MBA Finance Management, Department of Management Studies, Christ (Deemed to be University), Bangalore,
3Associate Professor, Department of Management Studies, Christ (Deemed to be University), Bangalore,
*Corresponding Author
DOI No: 10.5958/2321-5763.2019.00019.2

ABSTRACT:
This article is an attempt to analyse the key determinants of capital structure in Banking, Financial Services and Insurance sector commonly known as BFSI in the past 5 years i.e., 2014 -2018. The study was conducted basically to analyseon which dependent variablethe independent variable depends on. Debt Equity ratio is considered as the dependent variable in the study and the independent variables considered are Return on Assets (ROA), Return on Equity (ROE), Earnings per share (EPS), Dividend Pay-out Ratio(D/P), Price Earnings ratio (P/E), Total Assets and Revenue. The sample used for analysis consists of 20 firms where 10 firms are banks and the remaining firms are Non-banking Financial Services.in the banking sector, there has been a CAGR of 11.08% in credit take-off and CAGR of 11.71% in deposits. The study concludes that EPS, PER, TA and TR don’t have any significant influence on capital structure and ROA and ROE plays an important role in determining the capital structure where ROA is negatively related to debt equity ratio.
KEYWORDS:
Capital structure, ROA, Debt Equity, Pecking Order Hypothesis,
Cite:
Mekha P. G, Lakshmi Sai. M, Suresha B. Determinants of Capital Structure - An Evidence from Indian BFSI Sector. Asian Journal of Management. 2019; 10(2): 115-118.
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