1.
M.S. Ramaratnam
– Assistant Prof., SCSVMV University, Kanchipuram, Tamil Nadu, India
2.
R. Jayaraman
– Assistant Prof., SCSVMV University, Kanchipuram, Tamil Nadu, India
Abstract
Capital structure decision is one of the most crucial decisions for any firm. In the light of the above fact the determinants of
capital structure were discussed in this paper by way of taking 24 companies from Indian pharmaceutical sector. In this study the influence
of independent variables such as tangibility ratio, return on total assets, net profit margin, and accumulated depreciation to total assets were
analyzed with respect to the dependent variable of leverage ratio. From the analysis the relationship between the independent variable and
dependent variable has been exhibited.
Keywords Capital Structure, Leverage, Correlation, Multiple Regressions
