(Bauer, p.

2004)He conducted his study Czech Republic, Hungry, Poland, and Slovakia
applying the total asset and total liabilities ratios in the market and he consider book value as
dependent variable and considering the following as independent variable size, growth,
profitability, volatility and non-debt shields, his findings show that size and debt financing has
positive relationship and where as the growth, profitability and non-debt-shields has negative
relationship and leverage and volatility leads towards no clear relationship.

(Bhaduri, 2002)The study used and apply factor analysis method where 9 variables growth,
profitability, non-debt-tax shield, tangibility, age of firm, financial distress, size, signaling and
uniqueness divulge as independent variable and shows positive relationship between size and
long-term-debt and also study analyze the other variable showing negative relation with
uniqueness and found positive impact with the growth, he also indicates in the study that the
industry specification proves to be an essential element having impact on capital structure.

(Titman & Wessels, 1988)Throw light in their study on the measurement of leverage, they apply
and use the factor analysis technique throughout their research, they basically used 6 singular
proxy for the appraise and to measure leverage, in their study they found some negative, positive
and no relation among the tested variable, they found that leverage has no relation with expected
growth, volatility, debt tax shields and tangibility. The positive relation is been found between
the firm size and its growth opportunities towards leverage and they also found the negative
relationship of profitability with leverage. In their study they suggest that the firm with high
credit ranking and better market values are open to large borrowing capacities.

(Frank & Goyal, 2004) The research paper observe many factors of capital structure specially in
the decision making, the study found that dividend paying firms have small leverage, the study
contain the profit, market to book assets, tangibility, log of assets and expected inflation as
independent variables They found market to book ratio to be negatively, and tangibility, log of
assets and profitability positively related to leverage

(Panno, 2003) In his findings he discovered that debt financing has positive relation with firm
size but leverage and risk have negative relation as well leverage and liquidity are also
negatively related, leverage is founded to have positive relation with the profitability of the firm
but price earning ration show negative relation with the leverage, asset composition show no
impact on the leverage.


(Ram Kumar Kakani, 1998) They adopted two ratio for the measurement of leverage gross fixed
asset to total asset and gross fix asset to total sales ratios, the following variables are consider
throughout their analysis corporation strategy, regulation, net export, uniqueness, earnings
volatility, growth, regulation, non debt tax shields, asset structure and profitability, in findings
capital intensity is found most significant to profitability in determining the firm capital
structure.

(RAVIV, 1991) In their study they try to determine that there are some specific attributes within
specific industry affect the firm capital structure, the analysis that they present in the study paper
state that leverage augment with firm size, firm tangibility, its profitability and non debt shields
and where as on other hand firm expenditure on advertising, R&D expenditure, earnings
volatility, bankruptcy probability and uniqueness can be reduce by leverage.