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Published
2026-08-03
Section
Regular Issues
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Copyright (c) 2026 Artha: Journal of Business and Finance
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
How to Cite
Drivers of Debt-Financing and Related Sustainability Costs: A Pre-and Post GST Perspective of Indian Consumer Goods SMESSayak Mitra
Sayak Mitra
Keywords: GST implementation, Debt financing, Sustainability Cost, Moderation effect, Consumer Goods SME
Abstract
This study investigates how the sustainability costs, i.e. tax compliance, logistics, and digitisation costs, moderate with key determinants of debt financing, viz., profitability, liquidity, growth, business risk, and cash flow, to shape the debt financing of Indian consumer goods SMEs across pre- and post-GST periods. Data have been analysed using a short panel of 65 BSE-listed SMEs (selected under revised MSMED Act, 2025thresholds) during 2014–2024. Arellano–Bond, 1991 dynamic estimation is applied to address issues like endogeneity and firm heterogeneity. Finally, study results exhibit a marked shift in the post-GST period. Profitability derogates long-term debt, while business risk becomes restrictive. However, sustainability factors moderate these effects differently, reflecting a lower compliance costs, improved logistics, and evolving digitisation, indicating that GST reforms and sustainable cost management are reshaping SMEs’ debt financing strategies towards a sustainable future.
Author Biography
Sayak Mitra, St Xavier’s College
Sayak Mitra is an Assistant Professor (in Accounting & Finance Group) at the Department of Management Studies, St. Xavier's College (Autonomous), Kolkata. He has over six years of teaching experience at the UG level in both Commerce and Management disciplines. His research interests include Corporate Finance & Financial Management, Behavioral Finance, Financial Market, Financial Econometrics, and Financial Statement Analysis.
