AMBER – ABBS Management Business and Entrepreneurship Review

R. Shalini ¹, Mahua Biswas ¹

Affiliations
1 MBA-BU Dept, Dayananda Sagar Institutions, Bengaluru-560078, IN

Abstract

This paper attempts to examine the firm specific factors which determine the capital structure decisions of publicly traded automobile companies of India. Based on the market capitalization, top ten 2 & 3 wheeler auto mobile companies listed in NSE and BSE are selected. Using multi regression model, accounting data of companies over a period of 10 years from 2007-2016 is chosen and the empirical study is conducted. Firm specific factors such as tangibility, firm size, liquidity, non debt tax shield, growth rate and profitability have been analyzed to check their influence on the leverage structure of the selected automobile companies in Indian context. Total debt leverage is taken as dependent variable and firm specific factors are taken as independent variables. It has been found from the study that except for non debt tax shield all the other factors like tangibility, liquidity, profitability, growth rate and firm size are statistically significant determinants of capital structure of the listed automobile companies.

Keywords

Capital Structure, Leverage, Tangibility, Firm Size, Liquidity, Profitability.

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Mahua Biswas ¹, Ashwini Vernekar ¹

Affiliations
1 Department of Management Studies Dayananda Sagar Institutions, Bengaluru, IN

Abstract

The Unemployment Rate of India is climbing high year on year, end of March 2018 the unemployment rate of the country has gone up to 4.1% and the number of unemployed persons is at 6.7 million. The job market of India is mostly conducive for skilled and educated. Micro Small and Medium Enterprises (MSMEs) play an important role in plugging this problem of India. They not only provide employment for unemployed but also motivate low skilled labor to start up his own enterprise. MSMEs are nurseries for entrepreneurship and innovation. Despite their tremendous potential, the MSMEs faces several difficulties, there have been high cost of traditional credit, restricted access to equity capital, raw materials at a competitive cost, unsuitable infrastructure, low technology levels, dearth of skilled manpower and lack of resources for marketing and competency, lack of access to global markets. Karnataka is one of the most progressive and industrialized states in the country and is leading States in driving India's economic growth. The State Government has taken various measures to safeguard the interest of these micro, small and medium enterprises. The study analyses the problem and prospects of MSMEs in Bengaluru.

Keywords

MSME, Employment, Entrepreneurship, Karnataka.

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