A STUDY ON THE DETERMINANTS OF CAPITAL STRUCTURE AMONG SELECTED AUTOMOBILE INDUSTRIES

Author: Rose James Student, Kristu Jayanti College (Autonomous), Bengaluru

Published On: 2022-04-08

According to financial experts and authorities, the mix of funds in the capital structure varies, but the financial structure remains the same, therefore the capital structure represents both long-term and short-term money sources. India's automobile industry is the world's third largest, and the country is currently the world's seventh largest commercial vehicle maker. One of the key engines of the country's economic growth is the automobile industry. Companies in the survey were chosen based on their popularity in India. The goal of this study is to figure out how the automobile industry works, with an emphasis on capital structure, profitability, and corporate performance. This study relied solely on secondary data from the annual reports of the top five firms. The data were investigated using correlation analysis. According to the research, the Debt Equity Ratio had no substantial impact on Ashok Leyland and Eicher Motors' performance in terms of Return on Assets, Return on Equity, Net Income Growth Rate, and liquidity condition. In force motors, position is influenced.

Key words – Automobile Industries, Capital structure, Profitability