Factors Determining Capital Structure of Indian Companies

This paper investigates the significant factors determining capital structure decision of the listed companies in BSE in India with a sample of top 20 listed companies in BSE Sensex for a period between 2011 to 2014. The main source of the study is from secondary data of firm's financial reports. Correlation and multiple regression analysis are used for present analysis and the results of study revealed that there is a negative correlation between leverage and firm's growth, liquidity, profitability and tangibility. But size is a major determinant of capital structure of firms in India.