Purpose

This research paper aims to explore the relationship of financial performance and capital structure of Indian pharma firms of BSE 500, the impact of research and development (R&D) expenditure on financial performance and also explore the moderating role of competitive intensity between the existing relationship of capital structure and firm performance.

Design/methodology/approach

The balanced panel data of listed pharma firms of BSE 500 are used for the research study, and the present study adopts both the panel and ordinary least square (OLS) estimation techniques to draw the results.

Findings

The results exhibit that the high debt ratio is harmful for the accounting performance of the selected sample of pharma firms of BSE 500. Besides, market competition negatively moderates the relationship between capital structure and firm performance.

Research limitations/implications

The research findings provide evidence for the policymakers/regulators that the sample firms should discourage the high debt financing in the presence of competitive intensity in the product marketplace.

Originality/value

The core contribution of the current research is to examine impact of R&D expenditure on financial performance and the moderating role of market competition on the relationship of capital structure and firm performance to the best of the authors' knowledge, and no single study has previously explored this relationship in the context of BSE 500 pharma firms.

中文翻译：

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资本结构、竞争强度和企业绩效：对印度制药公司的分析

目的

本研究论文旨在探讨 BSE 500 印度制药公司财务绩效与资本结构的关系、研发 (R&D) 支出对财务绩效的影响，并探讨竞争强度在现有资本关系之间的调节作用。结构和公司业绩。

设计/方法/方法

本研究采用 BSE 500 上市制药公司的平衡面板数据进行研究，本研究同时采用面板和普通最小二乘 (OLS) 估计技术得出结果。

发现

结果表明，高负债率不利于 BSE 500 制药企业样本的会计绩效。此外，市场竞争对资本结构与企业绩效之间的关系负向调节。

研究限制/影响

研究结果为决策者/监管者提供了证据，即样本公司应在产品市场竞争激烈的情况下阻止高债务融资。

原创性/价值

目前研究的核心贡献是研究研发支出对财务绩效的影响以及市场竞争对资本结构和公司绩效关系的调节作用，据作者所知，此前没有任何一项研究对此进行过探讨。 BSE 500 制药公司背景下的关系。