Impact of Capital Structure of Listed Companies on Indian Capital Market

This study involves the empirical investigation of the impact of capital structure on the stock price of the companies listed in National Stock Exchange (NSE), India. The secondary data over the period of 2007–2016 of four industries such as Pharma, FMCG, Automobile and IT with five companies of each were used for the study. The analysis of relationship between capital structure and stock value are made through regression model using AMOS graphical environment. The capital structure involving shareholders’ equity and debt are considered as predictors of the study. Further the ratios such as Interest rate, Net profit margin, Gross profit margin, operating profit margin, Earnings per share, Price earnings ratio and Dividend payout ratio for the 20 companies of ten years are estimated. The conceptual model that fits all these variables and ratios are designed to test the hypothesis. The result reveals that shareholders’ equity and debt of the company influences the mediator variables which in turn has impact on the stock price of the National Stock Exchange (NSE) market.