Adarsh Journal of Management Research

Open Access Open Access  Restricted Access Subscription Access

An Analysis of the Relationship between Net Profit and Owner's Equity of Selected Cement Companies in India


Affiliations
1 Department of MBA, MIT-Mysore, India
2 Department of MBA, VTU Post Graduate Centre, VTU RO, Mysore, India
 

Capital structure decision is the major one since the profitability of a firm is directly affected by such decision. The successful selection and use of capital is one of the key elements of the firms’ financial strategy. Hence, proper care and attention need to be given while determining equity in capital structure decision. The purpose of this study is to investigate the relationship between net profit and owner’s equity of 10 listed Indian cement companies over the past 5 years period from 2011 to 2016.The data has been analyzed through using descriptive statistics and correlation analysis to find out the association between the variables. Results of the analysis show that there is a positive as well as negative association between net profit and owner’s among them.

Keywords

Capital Structure, Owner’s Equity, Profit.
User
Notifications
Font Size

  • T. Velnampy and J AloyNiresh, the relationship between capital structure and profitability, Global Journal of Mangement and Business Research, Vol 12, Issue 13, 2012

  • Basil Al-Najjar and Peter Taylor, the relationship between capital structure and ownership structure, Emerald Journal,Mangerial Finance, Vol. 34, No.12, 2008

  • Marc Jegers, the sustainable growth rate of Non Profit Organizations: The Effect of Efficiency, Profitability and Capital structure, Financial Accounting and Management, 19 (4), Nov.2003.

  • Roden, Dianne M, Lewellen and Wilburg, Corporate Capital Structure Decision-Evidence from Leveraged Buyout, Journal of the Financial Management Association, Vol 24, Issue 2.1992.

  • Chadha, Saurabh, Sharama and Anil K , Capital Structure and Firm Performance: Empirical evidence from India, Business Source Elite, Vol 19, Issue 4

  • FitimDeari, Media Deari: The Determinants of Capital Structure: Evidence from Macedonian Listed and Unlisted Companies RavinderVinayak and Ravi Kumar Gupta: Determinants of Capital Structure of Corporate Giants in India, The Indian journal of commerce, Vol. 55, No.4, Oct-Dec 2002.

  • A. M. Goyal: Impact of Capital Structure on Performance of Listed Public Sector Banks in India: International Journal of Business and Management Invention, ISSN (online)2319-8028, www. Ijbm.org, Vol. 2, Issue 10/ Oct 2013/ Page 3543

  • Maryam Masnoon, Abihe Saeed: Cpital Structure Determinants of KSE Listed Automobile Companies- European Scientific Journal May2014 edition, Vol 10, No 13, ISSN 1857.

  • Bidyut Jyoti Bhattacharjee, J-S 2010: Determinants of capital structure of Indian Industries, The Indian journal of commerce, Vol, 63, No. 3.

  • Goy B. Hatfield, Louis T.W. Cheng and Wallace N. Davidson-1994: The Determination of Adarsh Journal of Management Research (ISSN 0974-7028 (P) - Vol. : 10 Issue : 2 September 2017 72 Shree Cement

  • Optimal Capital Structure: The Effect of Firm and Industry Debt Rations on Market Value, Journal of Financial and Strategic Decision, Vol. 07, No.3

  • Nicos Michaelas, francies Chittenden, PanikkosPoutziouris, (1998) “ A Model of Capital Structure Decision Making in Small Firms”: Journal of Small Business and Enterprise Development, Vol. 5 lss: 3, pp. 246-260.

  • Stewart c Myer, Journal of economic perspectives- Vol. 15, No. 2- spring-2001, Myer, page 81-102.


Abstract Views: 326

PDF Views: 180




  • An Analysis of the Relationship between Net Profit and Owner's Equity of Selected Cement Companies in India

Abstract Views: 326  |  PDF Views: 180

Authors

H. G. Nagesha
Department of MBA, MIT-Mysore, India
T. P. Renuka Murthy
Department of MBA, VTU Post Graduate Centre, VTU RO, Mysore, India

Abstract


Capital structure decision is the major one since the profitability of a firm is directly affected by such decision. The successful selection and use of capital is one of the key elements of the firms’ financial strategy. Hence, proper care and attention need to be given while determining equity in capital structure decision. The purpose of this study is to investigate the relationship between net profit and owner’s equity of 10 listed Indian cement companies over the past 5 years period from 2011 to 2016.The data has been analyzed through using descriptive statistics and correlation analysis to find out the association between the variables. Results of the analysis show that there is a positive as well as negative association between net profit and owner’s among them.

Keywords


Capital Structure, Owner’s Equity, Profit.

References





DOI: https://doi.org/10.21095/ajmr%2F2017%2Fv10%2Fi2%2F141498