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Rising Debt Vs. Rising Income: An Empirical Study of Indian Companies

Authors: Shailesh Rastogi and Vinay K. Srivastava

Journal: Saaransh

Publication date: 2010

Publisher: Saaransh

URL: click here


Abstract:

A concern was mooted when a ripple effect of financial depression in the west made its presence felt in the east too. The concern was regarding higher debt proportion present in the balance sheets of Indian companies. Falling income made this situation a cause of concern keeping in view the rising examples of insolvency in USA and Europe. This study examines the impact of debt proportion in the capital structure and its impact on revenue and net profit in India for the period 1993-2008.It was found in the study that though, debt was increasing fast but revenue of Indian corporate was growing faster and net profit was growing fastest.