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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. [ABSTRACT FROM AUTHOR]

The study examines the impact of Corporate Governance (CG) determinants on a firm's default risk and profitability for mid, small and large-cap Indian companies. In this paper, the authors examine the Indian firms' probability of default and their profitability depending on CG determinants by studying data on two dependent and 15 independent variables for 125 companies indexed in Nifty's (Indian stock exchange). We used panel data, panel regression model, and Altman test as statistical tools for analysis. The results show that defaulting companies have a higher concentration of ownership, lower voting interest, poorer financial transparency, and less efficient board composition. The findings also suggest the significance of considering the comprehensive use of CG information in corporate credit decisions, ultimately affecting the profitability determining Return on Assets (ROA) and Return on Net Worth (RONW) of the firm. Large-cap, mid-cap, and small-cap companies should include information on CG in their default prediction models for better performance, in addition to the financial information. This paper extends the present literature within the Indian context, particularly by examining Firm Performance (FP) and financial distress risk to the extent of CG mechanisms adopted. [ABSTRACT FROM AUTHOR]