International Journal of Commerce and Management Research

Authors
B Navaneetha, S Aadhi Shivani, VS Aarthy, A Abinayaa, GK Akshaya

Abstract
The capital structure is an important decision of the business to fix the combination or mixture of debt and equity capital of the company. The study examines the influence of capital structure on the performance of the company. In order to analyze the capital structure of Tata Motors Limited, a study had been conducted with the help of secondary data for the period of 5 years (i.e.) 2012 to 2016. The company’s performance is measured through financial tools such as, ratio analysis and leverage. The ratios and leverage are the most important and reliable indicators to measure the financial performance of a company, as they check the current performance of the company and are very helpful for the management to take remedial measure if there is a declining trend. There are a number of determinants that affect the decisions taken whole determining the capital structure like cost of capital, control, flexibility, etc. Hence, the decision regarding capital structure is the crucial decision which should be taken by every business, as the positives and negatives of these decisions plays an important role in determining the future of the business.