International Research journal of Management Science and Technology

  ISSN 2250 - 1959 (online) ISSN 2348 - 9367 (Print) New DOI : 10.32804/IRJMST

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A STUDY ON IMPACT OF CORPUS COMPOSITION ON WEALTH CREATION

    2 Author(s):  DR. K.T. GOPI,MS. MOMINTAJ

Vol -  10, Issue- 5 ,         Page(s) : 186 - 198  (2019 ) DOI : https://doi.org/10.32804/IRJMST

Abstract

Every business entity would take a diplomatic route when it comes to profit maximization. A broader perspective of profit maximization was eventually had a paradigm to wealth maximization. Wealth of the business is a function of many macro and micro factors with respect to internal and external environment. Capital structure is one such major factor which has been debated quiet a long period among the financial therapists. Study of capital structure mix is always been a critical decision making in the business. Finding an optimal debt-equity mix considered a dynamic process as it varies with the other conditions. This paper intends to find a generic capital structure mix that enhances the value of firm for selected industries in Indian Economy. Three dominating industries in the Nifty fifty are selected and half of the companies among them are selected in the study. It is found that debt equity mix has nothing to do the value of the firm in few cases and very little explanatory power to impact the value of the firm. Even though empirical soundness is debatable for the selected industries, companies and time duration, usage of sophisticated methodology justifies the findings to the popular theories in the domain.

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