Capital Structure Performance of Steel Author...

Capital Structure Performance of Steel Authority of India Limited and Tata Steel Limited: By Testing Trade-off and Pecking Order Theories

Author Name : Dr. P. Sanjeevi

ABSTRACT Capital structure is key discipline of financial operations of steel industry. This researcher constitutes an attempt to identify the impact of Capital Structure Performance of two leading and rank one public and private sector steel companies. The analysis was done with the Capital Structure and its importance on financial performance of select two steel producing companies during year 2014-15 to 2018-19 (Five years) of Steel Authority of India Limited and Tata Steel Limited. The idea of this paper is to examine the extent to which growth determines of Capital Structure performance of these two companies by testing of Trade-off and Pecking Order Theories. This is done by examining the Capital Structure components consisting of long-term debt with Capital Structure determinants of SAIL and TSL and then testing the resulting ideas empirically. This paper may provide useful insights for the interested stakeholders, such as customers, depositors, borrowers and investors etc.