An Empirical Examination of Financial Pattern of Infrastructure Sectors in India

摘要

Governments around the world have realized that development of infrastructure require huge capital and governments' revenues are not adequate to develop the required infrastructure. Finance is an essential part of infrastructure development. Whether it is government, public or private sectors which undertake to develop infrastructure, they require different forms of finance. Understanding the financing patterns of companies is an empirical issue. This paper aims at ascertaining the financing patterns of infrastructure companies. We use the financial data of 306 Indian companies in different sectors in India and present the analysis of financing pattern for four sectors. Financing pattern of sample companies has been studied by using 20 different ratios. Result shows that the financing patterns in the construction, steel, cement and power sectors companies in India have used more debt, that too short term debt, to finance their assets as well the operations. Companies in most of these sectors have not been able to generate adequate revenues to service the debts. The result also shows that there is a significant difference in the financing pattern of different infrastructure sectors. The results of the study may be used by investors, policy makers, researchers. Further study may be undertaken to analyse the individual companies in each sector to know the financing pattern.