• DR. MEENA RANI

The decision on the capital structure is a big financial management move. This judgement is aimed at maximising the organisation's shareholder capital or value in a private company. An enterprise’s valuation is dependent on projected profits and capital expenses. The financial structure affects the value of the business by either running on projected income or capital expenses or both. The deductibility of interest costs usually decreases the tax burden of the corporation, however raises the financial exposure by the resort to debt funding. The management must therefore choose the system of resources under which the leverage amount decreases the Marg.al cost of capital, maximises the profits accessible to the shareholders and maximises the company's overall value. Both theoreticians and scholars have called attention to the impact of the capital system on capital costs. The influence of the capital system on capital expenditures and vice versa remains, considering the vast number of studies that have arisen during the past few years, unexplained. The finance analysts have varying views. Traditionally, the cost of capital relies on the composition of capital. Modigliani and Miller (MM), however, hold that a company's capital expenses stay invariant in spite of modifying the structure of the capital. There are several research articles that affirm or contradict the Modigliani Miller and conventional viewpoints.

Capital Structure, Financial Management, Financial Performance, Leverage, Trade-off Theory.

"A STUDY ABOUT THE RELATIONSHIP BETWEEN CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF SELECTED PHARMACEUTICAL COMPANIES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 10, page no.f174-f185, October-2022, Available :http://www.jetir.org/papers/JETIR2210532.pdf

"A STUDY ABOUT THE RELATIONSHIP BETWEEN CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF SELECTED PHARMACEUTICAL COMPANIES IN INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 10, page no. ppf174-f185, October-2022, Available at : http://www.jetir.org/papers/JETIR2210532.pdf