Publication Type:

Conference Paper

Source:

International Conference on Communication and Signal Processing, ICCSP 2016, Institute of Electrical and Electronics Engineers Inc. (2016)

ISBN:

9781509003969

URL:

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85006786149&doi=10.1109%2fICCSP.2016.7754439&partnerID=40&md5=0e54eb1a1223b768efa307647b043a48

Keywords:

Capital structure, Finance, Financial crisis, Financial institution, Financial restructuring, Global financial crisis, India, Post financial crisis, Signal processing, Textile industry, Textiles, Tobit analysis

Abstract:

Integration of India into the global economy and the contagious spread of financial crisis across countries has resulted in the financial restructuring of many industries. Textile industry, one of the major contributors of India's GDP and exports, changed their capital structure post financial crisis. Capital structure theories in the literature explain that the firm characteristics like size, profitability, tangibility, NDTS and growth affect the financing decision of the firm. In this study, t test was performed to prove that there is a significant change in the borrowing pattern before and after global financial crisis 2007-08 with the major influence on bank and financial institution borrowing. Further, TOBIT analysis was performed to find the influence of global financial crisis on firm's capital structure along with firm characteristics and industry groups as control variables. As a result, financial crisis impacts capital structure and the impact vary across different industry groups.

Cite this Research Publication

P. Amirthalingam and Dr. Sangeetha G, “A TOBIT Analysis of Financial Crisis Impact on Capital Structure”, in International Conference on Communication and Signal Processing, ICCSP 2016, 2016.