Graphing Capital Structure Analysis of IT Sector With Special Reference to HCL
Author : M. A. Suresh Kumar , Kannan Paulraj and R. Naveen PrakashVolume 7 No.2 July-September 2018 pp 6-11
Abstract
This study employs two different analytical tools namely, financial ratios and statistical tools. To calculate the growth of the select IT Industry, the compound annual growth rate and trend analysis were used. To find out the capital structure position debt-equity and leverage of select IT Industry and Information Technology industries were analyzed. The Summary statistical co-efficient of variation, correlation, multiple regression analysis and structural equation model were also used appropriately to compare the profitability and the leverage position of the select IT Industry. There were evidences from foreign studies to support Capital Structure theories which have studied various determinants of Capital structure with IT Industries. The Industries range from small scale to very large scale company. The researcher had made an attempt to study the structure of capital in IT Industry in India. The researcher was motivated to carry out a study on these IT industries. By using various capital related terms such as long -term debt, short-term debt, operating cost, operating profit, expenses, dividend payout, net profit to net worth, total debt, capital intensity, firm’s asset structure, age of the firm, size of the firm, growth of the firm and firm’s risk the current research has been designed. The required financial data have been collected from the time boundary of 2006 – 2007 to 2016 – 2017. The present research work is a rewarding exercise to the scholar and the researcher will be delighted if the suggestions are incorporated to earn good return on equity. The restructuring of capital, where the companies are suffering with sickness will enhance a good and viable financial performance. For academics, trainers and consultants, the present research will help them to look into it with a new insight and analyze the same with various dimensions in IT Industry. The findings of the study certainly provide a framework for understanding the capital structure and financing of Small and medium enterprises, and have significant theoretical and practical implications. Based on the findings suggestions were given to improve the efficiency of determinants of capital structure and its operations by proper mobilization of funds thus highlighting the prominent role of the finance manager. This study aims at finding out the trend and pattern of financing by the Indian IT Industries.
Keywords
Capital Structure, Risk, Return, Performance, BSE, NSE
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References
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