Corporate Governance and Capital Structure: Evidence from Select Indian Pharmaceutical Companies

Authors

  • Madhuvanti Sathe University of Pune
  • S. U. Gawade University of Pune

DOI:

https://doi.org/10.33516/maj.v49i7.100-109p

Abstract

This study finds out that the quality of corporate governance has implications on capital structure decisions of Indian pharmaceutical companies. Funding is a crucial activity for any business. In a capitalist economy, financing is fundamental to the viability of companies and to the persistence of the capitalism itself. The availability of funds depends on the efficient allocation of resources by the economic agents from financial markets to productive investments. (Toledo) The suppliers of funds are interested in getting good returns on their investments. They expect the managers to invest in profit making activity which ensures fair returns on the money invested. They would always want managers to grab every profit making opportunity and do away with bad investments.

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Published

2014-06-01

How to Cite

Sathe, M., & Gawade, S. U. (2014). Corporate Governance and Capital Structure: Evidence from Select Indian Pharmaceutical Companies. The Management Accountant Journal, 49(7), 100–109. https://doi.org/10.33516/maj.v49i7.100-109p

Issue

Volume 49, Issue 7, July 2014

Section

Corporate Governance
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