Determinants of Capital Structure: Evidence from BSE Sensex

Abstract

This study aims at to examine the determinants of capital structure of BSE Sensex companies. In nutshell the study concludes that the model's intercept is positive, but it lacks statistical significance. Among the independent variables, only DOL (Degree of Operating Leverage) and the measure of size based on tangible assets show significance. The majority of the other variables exhibit insignificance, with over half of them having negative coefficients. Despite this, the model's adjusted R-squared value of 0.843 indicates that it effectively explains around 84 percent  variation in the dependent variable.