Authors

1. Dr. Kapil Sharma

Affiliation

• Reader Institute of Management Studies Devi Ahilya University Indore

Abstract

Capital Structure is treated as one of the most important areas of study in the modern finance. The source of long term capital for any organization is very crucial element for it future growth and prospectus. Modigliani and Miller (1958) concluded in their research that the value of the firm is independent of its capital structure. Ever since then the debate on capital structure has not stopped and a number of studies have been conducted. But most of the studies have been conducted in developed markets and a very few studies are available in Indian context (in terms of period and number of firms). Moreover all whatever is available is confined mostly on manufacturing sector and very little empirical research is done in the context of Indian Banking sector. This necessitates the importance of an in-depth study of capital structure of Indian banks. Banking prior to 80’s and banking now, present a perfect study of contrast. Yesterday’s compulsions no more appear in today’s priority. What was important in those days has lost its signifance today. Study of capital structure of Indian banks has also taken importance in recent years. The paper aims to study the factors that affect of capital structure of Indian banks.

Keywords

Capital Structure , Empirical

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