After the famous but controversial Modigliani-Miller Capital Structure Irrelevance theory many researchers tried to find and establish the relationship between capital structure and financial performance. Some researchers are in opinion that there is a negative relationship between the debt oriented capital structure and financial performance and some others suggest a positive relationship between the two. But still some other researchers are there, who have put forwarded supporting empirical results in favour of Modigliani-Miller theory. As both international and Indian scenario provides these controversial results as to the relationship between Capital Structure and Financial Performance, this gives an opportunity to the future researchers to study the existing theoretical and empirical literatures in this regard, so as to find a gap for further research on the topic. In this paper an attempt has been made in this regard. After analysing, it is found that there are many industries in India in which this empirical analysis can be performed either to confirm the theory or to add some further knowledge in this regard.
Modigliani-Miller Capital Structure Irrelevence Theory, Capital Structure, Financial Performance, Theoretical and Empirical Literature
