International Journal of Financial Management

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Factors Affecting Capital Structure Decision: Empirical Evidence from Indian Oil and Gas Sector


Affiliations
1 Prin M. C. Shah Commerce College, Gujarat University, Gujarat, India, India
2 Prin M. C. Shah Commerce College, Gujarat University, Gujarat, India., India
     

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In the existing research, analysis has been done on finding out the impact of the independent variables, i.e., profitability (ROA), liquidity (CR), and tangibility (FA to TA ratio), on the dependent variable, i.e., capital structure (debt-equity ratio) of the oil and gas public sector in India during the period of 5 years, i.e., 2015-2016 to 2019-2020, through the statistical model. The study found that the independent variables, i.e. ROA and current ratio, have a negative/indirect impact on capital structure decision, while the independent variable, i.e., fixed assets to total assets was found to have a positive/direct impact on capital structure decision.

Keywords

Capital Structure, Liquidity, Profitability, Tangibility
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  • Factors Affecting Capital Structure Decision: Empirical Evidence from Indian Oil and Gas Sector

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Authors

Dharmendra S Mistry
Prin M. C. Shah Commerce College, Gujarat University, Gujarat, India, India
Pallavi C Vyas
Prin M. C. Shah Commerce College, Gujarat University, Gujarat, India., India

Abstract


In the existing research, analysis has been done on finding out the impact of the independent variables, i.e., profitability (ROA), liquidity (CR), and tangibility (FA to TA ratio), on the dependent variable, i.e., capital structure (debt-equity ratio) of the oil and gas public sector in India during the period of 5 years, i.e., 2015-2016 to 2019-2020, through the statistical model. The study found that the independent variables, i.e. ROA and current ratio, have a negative/indirect impact on capital structure decision, while the independent variable, i.e., fixed assets to total assets was found to have a positive/direct impact on capital structure decision.

Keywords


Capital Structure, Liquidity, Profitability, Tangibility

References