Corporate capital structure: The case of Indian Textile Firms

The typical financing decisions include how much debt and equity to sell. The excess use of debt may endanger the very survival of a firm; on the other hand, the conservative policy as well may deprive its equity holders to enjoy on the principle of trading-on-equity, as the debt is considered relatively cheaper source of finance that may in-turn magnify the return of euqityholders. The main objective of the paper is to assess and analyze of Indian Textile Industry. The paper empathizes on diverse determinants that facilitate the firm to resolve about the debt-equity choices. The paper concludes that profitability, asset composition and growth rate, which can play an extensive task in shaping the capital structure of Indian textile firms.