| Article ID: | iaor19971264 |
| Country: | India |
| Volume: | 21 |
| Issue: | 3 |
| Start Page Number: | 29 |
| End Page Number: | 36 |
| Publication Date: | Jul 1996 |
| Journal: | Vikalpa |
| Authors: | Dhankar Raj S., Boora Ajit S. |
| Keywords: | finance & banking |
Academicians and practitioners alike have found it difficult to resolve the issue of optimal capital structure in the perfect capital markets of the West as well as in the imperfect Capital markets, as in India. This paper examines whether there exists an optimal capital structure in Indian companies, both at the micro- and macro-level and whether financing decisions affect the value of a firm.