Impact of Global Economic Crisis on the Capital Structure of BSE-Listed Firms: An Empirical Analysis.

The paper examines the linear relationship between various debts of companies and their capital structure by applying regression model. The sample comprises the balanced dataset of 21 Indian companies registered on the Bombay Stock Exchange (BSE), whose shares were traded most on Sensex during the Global Economic of 2008. Moreover, the study investigates whether the capital structure of companies was affected after the economic crisis. The empirical result supports the existence of short-term, long-term, and total debt. According to well-known capital structure theories, debt affects the capital structure and its determinants. Furthermore, the findings have managerial implications for debts. A high level of debt affects companies' profitability, financial distress and tax rate. [ABSTRACT FROM AUTHOR]