European Journal of Business and Management www.
iiste.
org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 3, No.
12, 2011
54 | P a g e
www.
iiste.
org
The Determinants of Leverage of the Listed-Textile Companies in
India
Liaqat Ali
Assistant Professor,...
More
European Journal of Business and Management www.
iiste.
org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol 3, No.
12, 2011
54 | P a g e
www.
iiste.
org
The Determinants of Leverage of the Listed-Textile Companies in
India
Liaqat Ali
Assistant Professor, School of Management Studies
Punjabi University, Patiala, Punjab, India
E-mail: ali.
liaqat@mail.
com
Abstract
This study examines the determinants of leverage of Indian textile firms using panel data analysis.
The sample
of the study covers 170 Indian textile companies listed on the Bombay Stock Exchange covering the period from
2006 to 2010.
Fixed effects regression model was used for the analysis of penal data of sample companies.
Firm
size, growth in total assets, non-debt tax shields, profitability and asset tangibility are used as explanatory
variables, while leverage ratio is the dependent variable in the model.
The results show that the variables of size,
non-debt tax shields, and tangibility have highly significant posi
Less