CAPITAL STRUCTURE AND OWNERSHIP STRUCTURE INTERPLAY - A STUDY ON SELECTED PUBLIC SECTOR LISTED COMPANIES IN INDIA

This paper analyses the relationship between ownership structure and capital structure in respect of listed Government companies in India. This study extends empirical work on role of ownership structure in determining optimal capital structure by including only Government companies in this study. The study uses two measures of capital structure, viz., Debt/Equity Ratio (DER) and Debt to Total Capital Ratio (DTR) and covers a periods of five years up to March, 2016. Results of the study indicate that relationship between capital structure and ownership structure remains indeterminate. The result provides some support to the contentions of agency theory.