Theoretical and Practical Review of Capital Structure and its Determinants


  •  Xiaoyan Niu    

Abstract

Capital structure is the mixture of debt and equity financing. Its choice and determinants related to many different factors. This thesis firstly present several traditional theories discussed on capital structure, such as trade-off theory, agency cost theory and theory of pecking-order. Then the paper concluded seven determined factors from practical aspects and discussed on the correlations among these factors and the choice of capital structure.


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