Abstract: This paper is concerned with the financial choices related to debt capacity as a source of capital and its impact on growth of the firm. The relationship between debt to asset ratio (as a measure of debt capacity) and market to book ratio (as a measure of growth) is investigated in this research paper. A mixed linear regression model is made to study the relationship between Book leverage and growth. 39 companies from the Nifty 50 of the NSE (National Stock Exchange of India) were selected, and their financial data of the previous 4 years is used in the research. Only the companies belonging to non-financial sectors were selected. The results reveal a significant positive relation between debt to asset ratio and market to book ratio, proving that there is no negative impact of debt capacity on the firm’s growth.
Keywords: Debt Capacity, Growth, Debt to Asset ratio, Market to Book ratio.
Title: The Influence of Book Leverage on Firm’s Growth
Author: Lakshya Kapoor
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 10, Issue 2, October 2022 - March 2023
Page No: 223-228
Research Publish Journals
Website: www.researchpublish.com
Published Date: 17-November-2022
