RELATIONSHIP BETWEEN CAPITAL STRUCTURE AND EARNINGS PER SHARE - A STUDY ON THE SELECTED INDIAN AUTOMOBILE COMPANIES
- Associate Professor and Teacher-in-Charge, Commerce Unit, Jagannath Kishore College, Purulia (W.B.), India
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The pattern of capital structure is of vital importance in financial decision making for the well being of any company. Optimal capital structure decisions influence the risk and return of the investors. Hence, capital structure not only minimizes the cost of capital for the company but also maximizes the market price of the shares. In a dynamic environment, a company has to take a lot of precautions while designing its capital structure and raising additional funds. The judicious use of debt and equity for appropriate capital structure is one of the major requisitions of the company. The present study is a modest attempt to compare the pattern of the capital structure or debt-equity ratio and its influence on earnings per share on automobile industry by choosing six popular and established companies for a specific period of time. The study observes in most of the cases dependence of earnings per share (EPS) on debt-equity in automobile industry in India. In few cases, they are not highly dependent due to some other possible reasons.
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[Pradip Kumar Das. (2017); RELATIONSHIP BETWEEN CAPITAL STRUCTURE AND EARNINGS PER SHARE - A STUDY ON THE SELECTED INDIAN AUTOMOBILE COMPANIES Int. J. of Adv. Res. 5 (Jun). 817-822] (ISSN 2320-5407). www.journalijar.com
Commerce Unit, Jagannath Kishore College, Purulia (W.B.), India
