A study on factors driving the capital structure decisions of small and medium enterprises (SMEs) in India

The prime focus of the study is to empirically examine the factors affecting the capital structure decisions of small and medium enterprises (SMEs) in India. The sample consists of 174 non-financial firms. Generalised method of moments (GMM) has been applied to find out the firm specific factors aff...

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Main Authors:	Purnima Rao, Satish Kumar, Vinodh Madhavan
Format:	Article
Language:	English
Published:	Elsevier 2019-03-01
Series:	IIMB Management Review
Online Access:	http://www.sciencedirect.com/science/article/pii/S0970389618304634

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spelling	doaj-36486e934f8b414f84273cb68e2e85c42020-11-24T23:08:23ZengElsevierIIMB Management Review0970-38962019-03-013113750A study on factors driving the capital structure decisions of small and medium enterprises (SMEs) in IndiaPurnima Rao0Satish Kumar1Vinodh Madhavan2Sushant School of Business, Anal University, Gurgaon, India; Corresponding author: Tel.: +91-7597900880Department of Management Studies, MNIT, Jaipur, IndiaFinance & Accounting Area, IFMR Graduate School of Business, Krea University, Sri City, Andhra Pradesh, IndiaThe prime focus of the study is to empirically examine the factors affecting the capital structure decisions of small and medium enterprises (SMEs) in India. The sample consists of 174 non-financial firms. Generalised method of moments (GMM) has been applied to find out the firm specific factors affecting financing decisions of SMEs in India. The study specifically examines the effect of firm's profitability, tangibility, size, age, growth, liquidity, non-debt tax shield, cash flow ratio, and return on equity on the leverage of the firm. It confirms the applicability of the pecking order theory for SMEs in India. Keywords: Capital structure, SMEs, Generalised method of moments, Leveragehttp://www.sciencedirect.com/science/article/pii/S0970389618304634
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Purnima Rao Satish Kumar Vinodh Madhavan
spellingShingle	Purnima Rao Satish Kumar Vinodh Madhavan A study on factors driving the capital structure decisions of small and medium enterprises (SMEs) in India IIMB Management Review
author_facet	Purnima Rao Satish Kumar Vinodh Madhavan
author_sort	Purnima Rao
title	A study on factors driving the capital structure decisions of small and medium enterprises (SMEs) in India
title_short	A study on factors driving the capital structure decisions of small and medium enterprises (SMEs) in India
title_full	A study on factors driving the capital structure decisions of small and medium enterprises (SMEs) in India
title_fullStr	A study on factors driving the capital structure decisions of small and medium enterprises (SMEs) in India
title_full_unstemmed	A study on factors driving the capital structure decisions of small and medium enterprises (SMEs) in India
title_sort	study on factors driving the capital structure decisions of small and medium enterprises (smes) in india
publisher	Elsevier
series	IIMB Management Review
issn	0970-3896
publishDate	2019-03-01
description	The prime focus of the study is to empirically examine the factors affecting the capital structure decisions of small and medium enterprises (SMEs) in India. The sample consists of 174 non-financial firms. Generalised method of moments (GMM) has been applied to find out the firm specific factors affecting financing decisions of SMEs in India. The study specifically examines the effect of firm's profitability, tangibility, size, age, growth, liquidity, non-debt tax shield, cash flow ratio, and return on equity on the leverage of the firm. It confirms the applicability of the pecking order theory for SMEs in India. Keywords: Capital structure, SMEs, Generalised method of moments, Leverage
url	http://www.sciencedirect.com/science/article/pii/S0970389618304634
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A study on factors driving the capital structure decisions of small and medium enterprises (SMEs) in India

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