Conclusion

The analysis shows that the relationship of the Leverage Ratio for BSE 200 companies was in accordance with the assumptions made about the same whereas the Leverage Ratio for MSME companies followed a significantly different trend. Also the defined factors could explain the movement of Leverage Ratio better for BSE 200 companies as compared to MSME companies.

MSME sector companies although are a major contributor to the national economy, they have lagged behind other corporations in terms of collecting funds for their operations from banks and financial institutions alike. We observe this from results obtained upon regression analysis.

It is advisable for the MSME companies to do a similar analysis in order remodel their business framework so that they can enhance their credit taking ability.

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