Productivity and Financial Structure: Evidence from Indian High-Tech Firms

Abstract

The paper utilizes data on high-tech Indian firms for 1996-2007 to explain the association between leverage and productivity. Accordingly, firm-level productivity measures are regressed on a set of control variables, which includes leverage among the regressors. The findings suggest that low leveraged firms tend to be more productive, on average. Robustness tests support the results.productivity; financial structure, leverage; India