Abstract
The purpose of this paper is to scrutinize and appreciate the theories of capital structure starting from theory of Miller and Modigliani (1958) of capital structure, which is also known as irrelevance theory of capital structure and also including theory like pecking order theory, trade off theory, market timing theory and agency cost theory. In addition, authors have tried to explain the theories and their contradiction with each other in detail. This paper will be an addition to understand the theories of capital structure.
Keywords
- Capital Structure Theories Search this journal for Capital Structure Theories (opens in a new tab)
- Capital Structure Search this journal for Capital Structure (opens in a new tab)
- Trade off Theory Search this journal for Trade off Theory (opens in a new tab)
- Debt Search this journal for Debt (opens in a new tab)
- Equity Search this journal for Equity (opens in a new tab)
- Leverage Search this journal for Leverage (opens in a new tab)
- Agency Cost Search this journal for Agency Cost (opens in a new tab)
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Copyright (c) 2012 Syed Muhammad Javed Iqbal, Saqib Muneer, Agha Jahanzeb, Saif-ur-Rehman (Author)

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Keywords
- Capital Structure Theories Search this journal for Capital Structure Theories (opens in a new tab)
- Capital Structure Search this journal for Capital Structure (opens in a new tab)
- Trade off Theory Search this journal for Trade off Theory (opens in a new tab)
- Debt Search this journal for Debt (opens in a new tab)
- Equity Search this journal for Equity (opens in a new tab)
- Leverage Search this journal for Leverage (opens in a new tab)
- Agency Cost Search this journal for Agency Cost (opens in a new tab)
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