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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM66868
Volume:
10 |
8 |
Aug 2026
Pages:
1-4
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Management Studies
Malla Reddy Engineering College and Management Sciences
Assistant Professor Dept of MBA,
Malla Reddy Engineering College and Management Sciences, Medchal, Hyderabad – 501 401
Capital structure determines the proportion of debt and equity used to finance business operations and long-term investments. An appropriate capital structure can reduce the cost of capital, improve financial stability, increase shareholder wealth, and support sustainable growth. This study examines the capital structure of TVS Motor Company, focusing on debt-equity ratio, financial leverage, cost of capital, profitability, liquidity, solvency, and shareholder value. It also examines factors influencing financing decisions and the importance of maintaining an appropriate capital structure. The study highlights the significance of effective financial planning and balanced financing decisions for improving operational efficiency, financial performance, risk management, and long-term organizational sustainability.
KEYWORDS
Capital structure is a significant financial decision influencing profitability, financial risk, liquidity, and shareholder value. TVS Motor Company needs an appropriate balance between debt and equity to maintain financial stability. An optimum debt-equity ratio can help control financing costs and financial risk. Effective financial leverage can contribute to improved shareholder value when properly managed. Profitability, liquidity, business risk, growth opportunities, and market conditions should be considered while making financing decisions. Regular evaluation of capital structure can help the company maintain financial flexibility. Appropriate use of retained earnings and external financing can support sustainable expansion. Overall, effective capital structure management can strengthen TVS Motor Company's financial performance, stability, and long-term growth.
1. Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261–297. 2. Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: A correction. The American Economic Review, 53(3), 433–443. 3. Myers, S. C. (1984). The capital structure puzzle. The Journal of Finance, 39(3), 575–592. 4. Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. 5. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. 6. Trade-off theory, pecking order theory, financial leverage, debt-equity ratio, and related capital-structure concepts are explicitly discussed in the uploaded report. 7. The report identifies TVS Motor Company's annual reports, financial statements, corporate finance journals, published research papers, business magazines, stock exchange reports, and reliable financial resources as secondary-data sources.
Publication Date
8/20/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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