Capital Structure Determinants: A Case Study of Pharmaceutical Industry

Abstract

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. This study is focused on Pharmaceutical Industry and five companies are taken as sample based on market capitalization. The reference period of the study is five years (2020-24) and is completely based on secondary data which has been collected through various sources. In order to achieve the objectives of the study, the researchers have employed Correlation and Regression analysis. The findings of the study have put forth that capital structure do have statistically significant impact on the debt equity ratio (DE), value of the firm (VF), WACC, Return on invested capital (ROI), Earnings per share (EPS).