Author(s): M. Babu, J. Gayathri, J. Sathya and G. Indhumathi
Financial economics has made a significant progress in explaining the incentives that make companies to choose particular financing policies. The corporate finance literature contains a host of studies examining the nature and determinants of corporate financial structure. These papers examine the determinants of capital structure from different aspects and draw conclusions on different outcomes as far as the choice of the determination of the level of financial leverage is concerned. The present study made an attempt to review a few studies on capital structure determinants.