• Uma Charan Pati
• Sudhanshu Sekhar Rath

One of the most important subjects of interest in corporate finance is to search for the optimal capital structure that helps organisations to maximize the value of the firm. Optimal capital structure does have profound impact on the profitability and financial sustainability of corporate firms. Empirical studies have confirmed the relationship between capital structure and value of a firm which was not the case when Modigliani and Miller conceptualized it in their original work. We have tried to find out, if any relationship exists between the capital structure, represented by the debt-equity ratio and the profitability of operations of firms as represented by the Earning Before Interest and Taxes (EBIT). An empirical study having the debt-equity ratio and EBIT of ten important corporate firms, five from the public sector and the rest five from the private sector have been undertaken to verify the stated relationship. The two variable linear regression model having the debt-equity ratio and EBIT has confirmed the theoretical postulate of a close connection between the optimal capital structure and the value of the firm.

Capital Stractur,Corporate Firms & debt-equity ratio

"An Empirical Analysis of the Optimal Capital Structure for Corporate Firms: with Special reference to a few select Public and Private Sector Industries in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.323-336, June 2019, Available :http://www.jetir.org/papers/JETIR1906U80.pdf

"An Empirical Analysis of the Optimal Capital Structure for Corporate Firms: with Special reference to a few select Public and Private Sector Industries in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp323-336, June 2019, Available at : http://www.jetir.org/papers/JETIR1906U80.pdf