The main motivation for this study is the verification of the relative capital structure as proxy for a
management of a firm to make financing decisions. Received theories so far suggest that there is an
optimal capital structure although what is the optimal capital structure of a firm remains unspecified
to-date. Financing decisions are both debt and equity financing decisions of firms. Thus, the aim of
this study address core practical issues that management faces to grow the firm by taking financing
decisions that would not lead to loss of value for the firm. This issue is also of academic interest to
sort out the mixed findings in the literature in support of the optimal capital structure idea and, most
of all, also to identify the market dynamics on financing issue.