Capital structure determinants of S&P BSE 500: A panel data research

Abstract

The paper identifies the most important factors specific to companies which impacts on the capital structure of 416 companies belonging to 14 industrial sectors listed in S&P BSE 500 for a duration of 19 years which is from 2000 to 2018. Multi regression model is used to understand the influence of select variables on capital structure. The study finds that 4 explanatory variables like firm size, tax paid, depreciation to total assets ratio and profitability ratio are statistically significant capital structure determinants.