School of Economics, Business Administration and Legal Studies, Executive MBA
The empirical subject aims to compare listed companies on BSE
relative to non listed competitors in order to asses performance
of the two groups and to investigate if listed companies have
better financial results and carries lower levels of debt.
Many companies are overleveraged and indebted having
difficulties to de-leverage and being captive in front of bank
financing. The subject is actual and interesting because of the
awareness the investors needs to have on the financing
possibilities for a company on the local market and as to gain a
better view of the local conditions for companies.
The results show that listed companies have a smaller total debt
per equity figure, thus non listed companies carrying a higher
ratio of debt being and being more leveraged; the debt burden of
non listed companies is seen in the net profit margin figure. Even
though we see few listings on BSE it seems that access to capital
markets pay off for businesses.