Contents:Introduction to Capital StructureSummary and Evaluation of ArticlesConclusionReferences/BibliographyIntroduction to Capital Structure:-In the field of financial capital structure, we understand the way in which an organization or a company finances its assets through a certain mix. and matching 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 business remains the same depending on how that business is financed. This theorem proves the importance of capital structuring by companies around the world. There are also other reasons, such as bankruptcy costs, agency costs, and information asymmetry. This article has also tried to explain the trade-off theory and also talks about company and country specific capital structure factors. Articles Related to Capital Structure:- There have been many studies, researches, arguments 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 of debt, then the company is said to have a 40% capital structure. equity financing and 60% debt financing. And the company's leverage ratio which is given by dividing total debt by total financing, or 60% in this example. Starting with a very informative article in which the authors attempted to analyze the importance of company and country specific factors in leverage. choice of 42 different countries around the world. Previous research by [Demirgüç-Kunt and Maksimovic, 1999], [Booth et al., 2001], [Claessens, ...... middle of article ......re in the world: the roles of firm-specific and country-specific determinants”, Journal of Banking and Finance, Vol.32, No. 9, pp. 1954-1969. [WWW] Available at-[Accessed December 9, 2008].Joyce, W. (2000) “Capital Structure and Financial Stress”, Credit and Financial Review, second quarter. [WWW] Available on- [Accessed December 9, 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) “Fierce Competition and the Long Stock Market”, Journal of Law and Economics, Vol.9, pp.. 259–277.