Influence on debt financing in industrial regulation and competition

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.



DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

A business corporation serves as a medium through which the investment objectives of individuals and institutions are carried out. Debt plays a very significant role in the operations of business corporations as most expansionary operations of these corporations are financed through various debt facilities. It has been the traditional view of numerous commentators of corporate problems that managerial decision making in business corporations should solely be on the basis of equity holders' interests, that is, that director's fiduciary duties are owed only to equity holders of the corporation. The objective of this thesis is to investigate the influence of debt financing on corporate governance. In order to reach this objective, I will examine the nature and purpose of a business corporation and its operations and the importance of corporate governance, the importance of debt financing in the operations of a business corporation. The methodology used for the purpose of this research is based on the secondary data. This research is more or less based on the literature review & the conclusions are drawn on the basis of actual resources listed in the references. This data analysis is base on the ANOVA, Coefficients of correlation, and regression analysis of the data set by taking debt finance as dependent variable and corporate governance, and conclusion is based on the result of these tests.

Table of contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

INTRODUCTION1

Introduction1

Problem Statement2

Aims and Objectives of the Research3

Research Questions4

Significance of the Research4

DATA ANALYSIS5

Nature and Importance of Corporate Debt Financing7

Nature of Debt Covenants in Debt Financing10

Covenants Regulating Subsequent Financial Decision12

Interpretation of Covenants in Debt Contracts15

Fiduciary Duties and Corporate Governance17

RESULT OF DATA ANALYSIS21

RESEARCH METHODOLOGY24

Introduction24

Overview of Qualitative Research Method24

Overview of Quantitative Research Method25

Overview of the Selected Methodology25

Search Technique27

CONCLUSION29

REFERENCES33

INTRODUCTION

Introduction

A business corporation serves as a medium through which the investment objectives of individuals and institutions are carried out. Persons who share similar investment objectives may pool their resources together by way of subscribing to and acquiring shares in the corporation that is used as the investment vehicle under various arrangements. Those who acquire the shares in the corporation, called the shareholders, delegate the responsibility for the management of the corporation to a group of people called the directors. The corporation's operations are financed with the proceeds of the issues of the shares but very often this proves to be inadequate, especially if the corporation is expanding its operations. There are several modes of financing plans available to corporations ...