International Journal of Business Management & Research - Volumes & Issues - Volume 12: June 2022, Issue 1

Capital Structure Determinants of Start-Up Businesses: An Empirical Study of India

  • Published: June 2022
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Authors

Priyanka, Prof. Karam Pal Narwal

DOI Number

–

Keywords

Capital Structure, Determinants, Leverage, Startups, India

Abstract

One of a firm’s most crucial decisions is undoubtedly its financing structure. It is described as how a company finances its assets by carefully balancing equity and debt. Through this study, we have investigated the capital structure determinants of startup firms in India by applying panel data regression methodology. The sample consists of 21 startup firms located in the Delhi NCR region of India and the period from 2017 to 2021 has been considered in this study. The results have revealed that firm size, profitability and liquidity are the main factors that have significantly influenced the capital structure decision of start-up firms in India. This study will help the present and future entrepreneurs consider some important factors while deciding on their financial structure and also help the policymakers to frame policies that promote a friendly entrepreneurial system in the country.

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How to cite

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Journal

International Journal of Business Management & Research

ISSN

2249-2143

Periodicity

Bi-Annual

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