Contents:Introduction on Capital StructureSummary and Evaluation of ArticlesConclusionReferences/BibliographyIntroduction on Capital Structure:-In the field of financial capital structure refers to the way in which an organization or enterprise finances its activities through a mix and match of equity, debt or hybrid securities. Modern thinking on capital structure is based on the Modigliani-Miller theorem given by Franco Modigliani and Merton Miller. The theorem suggests that in a perfect market the total value of the company remains the same depending on how the company is financed. This theorem demonstrates the importance of capital structuring by companies around the world. There are also other reasons, such as failure costs, agency costs and information asymmetry. This article also tried to explain the trade off theory and also talks about the company and country specific factors of capital structure. Articles Related to Capital Structure: -There have been a lot of studies, research, discussions and articles written on capital structures as it is one of the broadest topics to discuss. For example, if a company sells £40 billion of equity and £60 billion as debt, the company is said to have a capital structure with 40% equity finance and 60% debt finance. And the company's leverage ratio, which is given by dividing the total debt by the total financing, which is 60% in this example. Starting with a very informative article where the authors tried to analyze the importance of company- and country-specific factors in leverage. choices from 42 different countries around the world. Previous research by [Demirgüç-Kunt and Maksimovic, 1999], [Booth et al., 2001], [Claessens, ...... middle of paper ...... re around the world: The role of firm- specific and country-specific determinants', Journal of Banking and Finance, Vol.32, No. 9, pp. 1954-1969. [WWW] Available from-[Accessed 9 December 2008].Joyce, W. (2000) 'Capital structure and financial stress', Credit and Financial Review, second quarter. [WWW] Available from- [Accessed 9 December 2008].Miller, M. (1977) 'Debt and Taxes', Journal of Finance, Vol.32, pp. 261-276.Modigliani, F. and Miller, M (1963) "Corporate income taxes and the cost of capital: a correction", American Economic Review, Vol.53, pp. 433-443. Rajan, R. and Zingales, L. (1995) 'What do we know about capital structure? Some evidence from international data", Journal of Finance, Vol.50, pp. 1421–1460. Telser, L. (1966) "Cutthroat Competition and the Long Purse", Journal of Law and Economics, Vol.9, pp. 259–277.