Financial Surplus and Capital Structure Dynamics: Evidence from Indian Firms

被引：0

作者：

Mishra, Ajay Kumar ^{[1
]}

Chauhan, Yogesh ^{[2
]}

Tripathy, Trilochan ^{[3
]}

机构：

[1] Indian Inst Technol IIT Kharagpur, Vinod Gupta Sch Management, Kharagpur 721302, West Bengal, India

[2] Indian Inst Management Raipur, Dept Finance & Accounts, Raipur 493661, Chhattisgarh, India

[3] Xavier Sch Management XLRI, Dept Finance & Accounts, Jamshedpur 831001, Jharkhand, India

来源：

ASIA-PACIFIC FINANCIAL MARKETS | 2024年

关键词：

Capital structure; Debt; Financial surplus; External financing; Speed of adjustment; G30; G32; G33; STRUCTURE DECISIONS; LEVERAGE DYNAMICS; ADJUSTMENT; DEBT;

D O I：

10.1007/s10690-024-09491-6

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

This study examines the capital structure adjustment process followed by Indian Firms. Our study focuses on investigating when a firm changes its capital structure. We discover a pattern of capital structure adjustments among Indian firms, where the financial surplus or deficit of Indian firms drives the decision to adjust the capital structure. The results show that the capital structure adjustment speed for Indian firms measured using book-value-based leverage is around 39% when firms have an above-target debt with a financial surplus and about 26% when firms have a below-target debt with a financial deficit. The adjustments occur when firms have above-target/below-target debt with a financial surplus/deficit. Our results show that Indian firms adjust their capital structure conditioned upon the firm's financial surplus/deficit.

引用

页数：23