Study on Capital Structure: Evidence from Selected Pharmaceutical Companies in India

Abstract

There is a significant relationship between efficient capital structure and growth of an organization. Capital structure what is the result of different components which included in forming capital of inorganization. Usually, organization mobilize the capital into shares and debentures. Combinations of these components are known as capital structure. But there should be an efficient policy in establishing Capitals of an organization. Otherwise which leads disturbance to cash flow and liquidity of an organization in the future and also it leads to bankruptcy. The Capital Structure of selected pharmaceutical companies are considered in this analysis, which supports to augment the efficiency of an organisation. The manufacturing industry is a significant contributor to GDP growth this industry is major contributor. The period of the study has been significant in the growth and performance of the manufacturing sector due to liberalisation and globalisation. To achieve the corporate objective of maximization of wealth of shareholders, every industry should maintain sufficient profit. The result of the study will definitely help companies, their policymakers, lending Institutions Government and Academies to evaluate the performance and growth of an organisation.