Asian Journal of Managerial Science (AJMS)
Capital Structure and Financial Performance of Pharmaceutical Companies in Indian Stock ExchangeAuthor : Tom Jacob and V.S Ajina
Volume 9 No.2 July-December 2020 pp 24-30
Capital Structure is an integral and important part of financial management having long term consequences. This paper tries to examine the impact of capital structure on the financial performance of Pharmaceutical companies in India. Capital structure is measured by the Debt Equity Ratio and firm performance as measured by Return on Equity. Regression Analysis is used to analyze the impact of capital structure on the financial performance of the pharmaceutical companies in India. The result indicates that the financial performance has no link with capital structure, which proves the Modigliani and Miller Theory of Capital Structure. The results of this study will provide meaningful insights to the academia and the corporate for better decision making.
Capital Structure, Financial Performance, Pharmaceutical Companies
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