Liquidity and Capital Structure: Special Reference to Sri Lanka Telecom Plc

Advances in Management & Applied Economics, vol. 3, no. 5, 2013, 89-99

11 Pages Posted: 24 Jan 2014

Date Written: 2013

Abstract

In the corporate finance, the decision on the capital structure and its components is viewed as one of the most extensively researched area. In this context, researchers carried out the study on liquidity and capital structure in the Sri Lanka Telecom Plc. Data on the Liquidity and Capital Structure from the year 2005 to 2011 were collected for the study purpose. Regression analysis was used to answer the research question as what extent the Liquidity influences on Capital Structure of the Sri Lanka Telecom Plc. Findings reveled that, the decision making on the capital structure is highly depending on the liquidity management of the Sri Lanka Telecom Plc. Due to that, the firm should focus on the liquidity management to take the decision on the capital structure which should lead to the firms value in the long term perspective.

Keywords: Capital Structure, Liquidity, Sri Lanka Telecom Plc.

JEL Classification: M41

Suggested Citation

Rajendran, Kajananthan and Achchuthan, Sivapalan, Liquidity and Capital Structure: Special Reference to Sri Lanka Telecom Plc (2013). Advances in Management & Applied Economics, vol. 3, no. 5, 2013, 89-99. Available at SSRN: https://ssrn.com/abstract=2383328

Kajananthan Rajendran (Contact Author)

University of Jaffna ( email )

Sri Lanka
Jaffna, North 40000
Sri Lanka

Sivapalan Achchuthan

University of Jaffna ( email )

Thirunelvely
Jaffna
Jaffna, Northern 40000
Sri Lanka
0094 - 0778364899 (Phone)

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