Determination of capital structure of non-financial listed companies in Colombo Stock Exchange (CSE)

Abstract

Capital structure decision poses a lot of challenges to firms. Determining an appropriate mix of equity and debt is one of the most strategic decisions non-financial companies are confronted with. A wrong financing decision has the tendency of stalling the fortunes of any business. Therefore, if managers are to achieve the goal of wealth maximization, conscious steps must be taken in the right direction and at the right time to identify those factors that must be taken into knowledge in determining appropriate financing mix. It is upon this premise that this conceptual piece is designed to guide the top levels of corporate managers in capital structure decisions. The paper explores a body of literature in saying determinants of capital structure decision of non-financial listed companies.