7.[54-59]The Determinants of Leverage of the Listed-Textile Companies in India

European Journal of Business and Management www. iiste. org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No. 12, 2011 54 | P a g e www. iiste. org The Determinants of Leverage of the Listed-Textile Companies in India Liaqat Ali Assistant Professor,... More

European Journal of Business and Management www. iiste. org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 3, No. 12, 2011 54 | P a g e www. iiste. org The Determinants of Leverage of the Listed-Textile Companies in India Liaqat Ali Assistant Professor, School of Management Studies Punjabi University, Patiala, Punjab, India E-mail: ali. liaqat@mail. com Abstract This study examines the determinants of leverage of Indian textile firms using panel data analysis. The sample of the study covers 170 Indian textile companies listed on the Bombay Stock Exchange covering the period from 2006 to 2010. Fixed effects regression model was used for the analysis of penal data of sample companies. Firm size, growth in total assets, non-debt tax shields, profitability and asset tangibility are used as explanatory variables, while leverage ratio is the dependent variable in the model. The results show that the variables of size, non-debt tax shields, and tangibility have highly significant posi Less