A Systematic Literature Review Analysis Of The Capital Structure Theories & Its Determinants: An Estimation Of The Future Trends

Abstract

Capital Structure is one of the most prominent words of the financial analysis. Several Studies have been done worldwide but very few numbers are there considering Indian Scenario, So  there is a need to do a Comprehensive Systematic Literature review analysis of the topic.  Our main objective of the study is to determine the future trends of the Capital Structure & its determinants based on the Systematic Literature review of the previous researches done to analyze the Capital Structure, Capital structure theories & its determinants.  We are analyzing various Capital structure theories such as NI approach, NOI approach, MM approach ,Trade-off Theory , Pecking Order Theory etc. We will also evaluate various firm specific determinants  like Profitability, Tangibility, Growth, Size, Business Risk, Non-Debt tax shield & their impact on Financial Leverage ( Capital Structure) . In order to realize the stated objectives, we have studied more than 100+ research papers , articles & Journals from various sources like Google Scholar, Research Gate etc  . Also we have used VOS viewer for the bibiliometric analysis of the Scopus data for a period of 11 years from 2009-2022. As a result , Our study revealed the relationship between Financial leverage & various determinants of Capital structure. We have also analyzed various future trends based on our study. Our study will help financial managers & higher authorities to take rational decisions while evaluating financial decisions in order to enhance the firm value.