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VOL. 12, ISSUE 2 (2026)
Capital structure determinants of Indian automobile companies: Evidence from selected firms
Authors
Dr. Poojan Parikh
Abstract
Capital structure is an important aspect of
corporate finance as it influences firms’ financing decisions, financial
stability, and overall performance. The present study examines the determinants
of capital structure of selected Indian automobile companies. The study is
based on 100 firm-year observations collected from 10 leading automobile
companies for the period 2015–16 to 2024–25. Debt-Equity Ratio was considered
as the dependent variable, while Return on Equity, Firm Size, Tangible Asset
Ratio, Current Ratio, Sales Growth, Depreciation-to-Total Asset Ratio, Asset
Turnover Ratio, and Interest Coverage Ratio were used as explanatory variables.
The study employed descriptive statistics, correlation analysis, and multiple
regression analysis using SPSS software. The findings reveal that
profitability, firm size, tangibility, and liquidity significantly influence
capital structure decisions. The regression model was found statistically
significant with satisfactory explanatory power. The study concludes that
internal financial strength and asset structure are important determinants of
leverage decisions in Indian automobile companies.
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Pages:236-242
How to cite this article:
Dr. Poojan Parikh "Capital structure determinants of Indian automobile companies: Evidence from selected firms". International Journal of Commerce and Management Research, Vol 12, Issue 2, 2026, Pages 236-242
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