Международный журнал экономики и менеджмента

Traditional Versus Modern Perspectives of Capital Structure Theories: A Comprehensive Review

Abstract

Bimpong Patrick, Thomas hezkeal Khela Nan, Abel Obeng Amanfo Ofori, Arhin Ishmael, Danso Edward, Kwakye Sammuel, Arthur Benedict6, Tettey Grace

Capital structure is as yet a riddle among researchers especially in the finance literature. The capital structure puzzle has been evolving over the years and there are several theories that seems to provide ideal solution or explanations. These theories are grouped into traditional and modern theories of capital structure. The overarching purpose of this study is to review extensively from traditional to modern the existing theories of capital structure that have been suggested in finance research to serve as guide for practitioners in taking decision about capital structure mix.