In real- world state, the MM suppositions don't and cannot live because of several defects operating endogenously and exogenously. As financing opinions do count in the real world, commercial finance literature has advanced a number of propositions that show how various defects explain the observed patterns of capital structure. These explanations have substantially concentrated on the defects on the side of the establishment the optimal capital structure minimizes the costs borne by investors as a result of levies, asymmetric information, conflicts of interest between operation and shareholders, etc. Grounded on this observation, it's held that the hunt for optimal capital structure has led toU-shaped or bell- shaped cost of capital for any establishment indicating that the cost of capital goes on dwindling with increased proportion of debt capital up to a certain point and latterly the cost of capital goes on adding with the increased debt proportion. The being inquiries on the capital structure have been largely confined to the United States and many other developed countries. Although the capital structure issue has entered great significance in these countries, it has remained neglected in developing countries due to different profitable and legal constraints. Still the profitable liberalization and reformation processes since 1980's in developing countries now have lower institutional walls. Indeed, the attitude of directors towards capital structure opinions enthralls the high position in commercial finance and hence an enquiry into behavioral finance seems to be the right approach. Research in this field will contribute to signify the significance of capital structure to value maximization ideal of the establishment. This study attempts to exfoliate some light on the capital structure issues in Indian environment including capital structure influence.

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Keywords: Capital, Developed, Management, Behavioral, Structure, Influence, Countries, Liberalization.