Determinants of capital structure with reference to paper industry: An explanatory analysis

Capital structure is the combination or proportion of various sources. An organization can procure funds by issuing equity shares, preference shares and debentures to the public. Apart from this, they may also borrow from the banks or financial institutions. These are the various sources available for a concern for procuring or mobilizing the capital. Whether capital is needed initially or additional fund needed for the smooth function there are various sources available for mobilizing the capital or fund. While designing the financial or capital structure manager has to consider the overall cost which will incur after constructing the capital structure. Paper industry is selected for the research. Five companies listed in the Bombay Stock Exchange were selected for the study. An attempt has been made to study the components of capital structure of paper industry.