Capital Structure Theories in India

This article discusses the capital structure theories of Indian corporates. It examines the factors that influence capital structure, such as the type of industry, the profitability of the firm, and the control of the firm. The article also discusses the different sources of finance used by Indian corporates, such as retained earnings, debt, and equity.

Here are some of the key points from the article:

• The factors that influence capital structure include the type of industry, the profitability of the firm, and the control of the firm.
• The different sources of finance used by Indian corporates include retained earnings, debt, and equity.
• Debt-dominated capital structure exposes Indian corporates to a high degree of total risk, which can lead to financial distress.

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