Vol: 6, Issue: 3 2016

Page: 01-41

Study on Corporate Investment in Service Sector in India

Naresh Vashist, Puneet Jain

This research paper is the study of the corporate investment in Information Technology Industry and in the Banking Industry. The study examines the trends and determinants of capital structure in Indian Banking and IT industries from the perspective of empirical capital structure literature. There are several fundamental disparities between financial and non financial firms that contribute to large difference in their capital structure position. This paper also shows about the finance practices in the corporate finance. There are three leading areas of corporate finance practices that consistently require the academic concentration of scholars in corporate finance theory. These include corporate financial practices relating to investing, financing and finally the practices concerning distribution. Corporate Finance has been the subject matter of coherent connotations among the researcher, corporate managers and the practitioners, ever since the evolution of corporate finance theory. Distinguished scholars, who visited the theory of capital budgeting, capital structure, cost of capital, capitalization, dividend policy and working capital of the firm, have come out with a number of recommendations that are of paramount understanding to budding researchers.