Capital Structure Practices of the Corporate Sector in India

A proper blend of debt and equity is a significant financial decision of the corporate firms from the perspective of its owners and other stakeholders. The excessive use of debt may endanger the survival of corporate form, while the conservative policy may deprive on advantages of cheaper debt. An appropriate capital mix influences both the return of the shareholders. With the changing business scenario; Indian business is moving towards attaining international standards as it is attracting many global players into the domestic arena in view of economic liberalization and globalization of the Indian economy. It can be said Indian business scenario is undergoing a dramatic change.