1Assistant professor, Department of Management Studies, Vijayanagara Sri Krishnadevaraya University, Bellary
2Professor, Department of Business Administration, University of Mysore, Mysore.
Online published on 16 March, 2019.
We have utilized new empirical testing on target adjustment model on traditional trade-off theory. The study is based on the sample data drawn from the health care sector for the five year period 2011–12 to 2015–16. The study examines the optimal capital structure of selected companies in the health sector listed firms in BSE. For examining the target capital structure of health sector companies in the present study consider, amount of debt issued as a dependent variable and change in debt and target debt as the independent variables are included, all of which relate to the traditional trade-off theory. Our empirical evidence provides strong hold for the trade-off theory.
Target structure, health care sector, BSE, trade-off theory. Simple regression test, debt amount issued, change in debt
