Title

Factors Affecting Ethical Sources of External Debt Financing for Indian Agribusiness Firms

Document Type

Article

Publication Date

2015

Originally Published In

Corporate Ownership and Control

Volume Number

13

Issue Number

1

Page Numbers

435-445

Abstract

Majority of the Indian farmers are financially constrained and pay very high interest rate to private moneylenders which has a negative impact on the survivability and growth of agribusiness firms. Because of less strict debt financing requirements farmers become prey to predatory lenders from private lending institutions that are not controlled by the central bank and may not behave in an ethical way. The study investigates factors affecting ethical sources of external debt financing by taking a sample of Indian agribusiness firms. Owners of agribusiness firms were interviewed through personal visits and telephone calls regarding the factors affecting ethical sources of external debt financing. The findings show that several factors affect ethical sources of external debt financing for agribusiness firms in India. This study contributes to the literature on the factors that affect ethical sources of external debt financing. This study also provides recommendations to improve access to ethical sources of external debt financing. The findings may be useful for agribusiness owners (farmers), financial managers, investors, agribusiness management consultants, entrepreneurs, and other stakeholders.

Comments

Published in Corporate Ownership and Control. Permission has been secured to include this contribution in the Liberty University’s scholarly repository. All Rights Secured. No copy of this file may be sold or reprinted in whole or in part. To purchase the entire journal issue that contains this contribution, please visit the website of the publication: http://www.virtusinterpress.org/-Corporate-Ownership-and-Control-.html.

Obradovich, John. “Factors Affecting Ethical Sources of External Debt Financing for Indian Agribusiness Firms.” Corporate Ownership and Control 13 1 (2015): 435-445.