Recent Article in AJMR
Determinants of Financial leverage in Indian Pharmaceutical Industry
Author(s)- Franklin John.S, Muthusamy. K
ABSTRACT
This paper attempts to explain the variables that influence the use of debt funds in the Indian Pharmaceutical industry .The results are broadly consistent with the previous research findings. Variables like interest, asset structure, retained earnings and intrinsic value of share are positively associated with leverage while cash flow and interest coverage bear negative association with leverage. Indian pharmaceutical Companies employ substantial amount of debt as is evident from debt-equity ratio as well as total debt to total assets ratio. The Indian pharmaceutical industry is growing at an annual growth rate of 20 per cent is evolving as one of the major industries in the world with its huge market and a great availability of skilled labour and improved laboratories
