A Review On Psychology Theology And Spirituality Theology Religion Essay

A Review On Psychology Theology And Spirituality Theology Religion Essay Psychology, Theology, and Spirituality in Christian Counseling written by Mark R. McMinn teaches Christian counselors the importance of Spirituality in the counseling office. Throughout the book McMinn provides deep insight on the integration of the three concepts; the author provides concrete cases that allow the reader to grasp the information by applying the scenarios to the text. To better equip Christian Counselors he uses cognitive therapy from a Christian perspective as foundation for his work. He stresses the importance of building an effective therapeutic relationship between the counselor and the client in order for therapy to be successful. McMinn uses a variety of religious interventions to establish psychological and spiritual health. Throughout the chapters he elaborates on the use of prayer, scripture, sin, confession, forgiveness, and redemption in the counseling practice. McMinn discusses the positive effects as well as negative side effects of the use of prayer. He states that the counselors level of spiritual maturity will provide an upper limit for the potential impact of prayer in counseling (McMinn, 1996, p.87). McMinn highlights the power of Scripture and outlines the specific effects it may have on the client. McMinn summarizes the chapter by noting Our knowledge of God, self and Scripture are all interrelated, but our capacity to understand any one of these elements will add to our ability to understand the others (McMinn, 1996, p.124). McMinns study of the nature of sin and its role in the counseling practice is also very thorough. As he notes, generally psychologists have been uninterested in sin, preferring to ignore it or to discuss the effects of the concept of sin (McMinn, 1996, p. 161). Such an attitude has negative consequences, as in most cases sin can be a reason of depression, feeling of guilt and other negative feelings. He proposes the Christian counselor to understand sin from a theological and spiritual perspective. As he states, such a change can add necessary depth to the work of a counselor and encourage his clients to grow spiritually. Describing the historical references of confession as a sacrament of penance, McMinn underlines the necessity to understand its role and importance in the work of a Christian Therapist. Confession requires humility, which requires us to look at ourselves honestly and recognize both our strengths and weaknesses. Confession closely deals with forgiveness, which is a very popular topic among counselors. The author attracts readers attention to the fact that Christian understanding of forgiveness may differ from the ways that non-Christian counselors understand forgiveness. Christian forgiveness is not a simple emotional relief; however, McMinn stated that our capacity to forgive one another depends on our capacity to understand both our need for forgiveness and Gods gracious gift of forgiveness (McMinn, 1996, p.235). McMinns final chapter on redemption sums up the pr evious topics prayer, scripture, sin, confession, and forgiveness. Redemption is a process of being freed from sin and being restored back unto God. As McMinn finalizes the book with this chapter he sums up redemption by saying the wonder of redemption is that we are brought back into a relationship with God (McMinn, 1996, p.265). Finally once we experience redemption, our old ways of thinking are brought as one with God. After reading this story I am reminded of a demonstration given by my former pastor. Leading up to this demonstration my uncle Jesse had been beaten unrecognizably by gang members in Charlotte, NC. My uncle, raised in the church, had a calling on his life from a very young age and refused to accept his calling. He had been running for years and through those years he was often referred to Jonah, but one night changed all of that for my uncle. I can still remember visiting him in the ICU at Carolina Hospital in Charlotte and afraid to look at the hideous swellings upon his face. His eyes were swollen to the size of golf balls and stitches had been applied to various parts of his face it was a horrible sight to see. After his release he was given shelter by my pastor and started attending the church. The demonstration given by my pastor showed the church what sin can do to a person. I remember hearing my pastor pray and my uncle confessing all his sins while standing at the altar. The pastor preached a heavy sermon that taught me how important the confessions of sins were in seeking forgiveness from God. I have learned that God is a God of second chances and he will grant us forgiveness if and when we are ready to confess with our mouths. The moral of the story my pastor pointed out was that God was a redeemer and therefore gave second chances to his sons and daughters. Reflection McMinn did an excellent job covering the aspects of integrating psychology, theology, and spirituality in Christian counseling. While the book offers insightful ways to look at different situations that may happen in the Christian counseling office there is one thing that bothered me most. If most types of prayer has not been researched how is the counselor supposed to define clear and ethical guidelines for the use of prayer in counseling? I believe that prayer forms an intimate relationship between God and the individual; therefore prayer should not be used in the therapy sessions especially if further research is needed. Prayer I do believe is an effective tool that can be used in therapy but should be used outside the counseling sessions gradually as the client feels comfort and the need for seeking Gods presence on his or her own. This is a good book and should be read by all Christian counselors. It is essential in helping to expand their knowledge on the basis of integrating p sychology, theology, and spirituality. The case studies are helpful in learning both positive and negative ways to approach similar situations met in the counseling sessions. McMinn did a great job elaborating on the different themes prayer, scripture, sin, confession, forgiveness, and redemption. The uses of the themes were successful in teaching the confused counselor how to integrate their spirituality into the therapy session. Overall the book is a positive guide for new and old counselors to use as basis of understanding how each of the themes can have a powerful impact on a clients progress. Actions This was an outstanding book and it taught me valuable instructions on multitasking as a counselor. McMinn stated that the most effective Christian counselors are able to process several ideas simultaneously (McMinn, 1996, p. 269). It is important for a counselor to be able to successfully integrate psychology, theology and spirituality in the counseling sessions to effectively treat the problems of their clients. I personally will take what I learned and continue to read and enhance my understanding of the different concepts so that I may learn to use them wisely. Reading this book enlightened me with so much information that I can easily share with a friend to enhance their knowledge of Christian counselors. I would first make it known to them that as a Christian counselor we are set apart from other psychologists in that we put God at the forefront of our lives and therapy sessions. Being a Christian psychologist comes with many challenges and we have to constantly refine our rela tionship with God and acknowledge him as the All knowing God because thats who we ultimately seek direction from. Learning how to integrate the use of prayer and scripture with Christian clients we have to recognize the negative side effects that can come of prayer or scriptural interventions. I will continue to keep God first in my life allowing him to speak to me, lead me, and guide me as an instrument to help others. I can only better myself after reading this book and take what I learned to become the multitasking counselor.

Andrew Jackson :: Biography Biographies Bio

Andrew Jackson, the seventh president of the United States of America, was born on March 15, 1767 in the Waxhaw’s area near the border of North and South Carolina. His parents lived in North Carolina but historians are not sure exactly where. Jackson was the third son of Scots - Irish parents. His father died a few weeks before he was born in a logging accident. His mother, Elizabeth Hutchison Jackson was a strong independent woman. After Jackson’s father died she was able to raise their three sons while they lived with one of her sisters. When Andrew was nine years old the Declaration of Independence was wrote and signed. Then when he was only thirteen he joined the Continental Army as a courier. The Revolution hurt the Jackson family. All three boys saw the front lines. Andrew’s oldest brother Hugh, died in the Battle of Stono Ferry. Then two years later Andrew and Robert, his other older brother, were taken for prisoners for a few weeks in April of 1781.They both got smallpox and within a few days of getting let go Robert died. Later on that year Elizabeth Jackson went to Charleston to nurse American prisoners of war. There she contracted either ship fever or cholera and died. After the war was over, Andrew found himself an orphan and an only child at 14. The next year and a half he spent living with relatives and being apprenticed to a saddle maker. He taught school for a short time after the war but did not enjoy it. When he was seventeen he went to Salisbury, North Carolina which is where he studied law for a few years. He was admitted in to the North Carolina Bar in September of 1787. In June of 1796 Tennessee separated from North Carolina and admitted to the Union as the 16th state. Andrew was soon elected Tennessee’s first congressman. He was also elected as a U.S. senator but resigned after only one session. He then went home and became a judge for six years on the Tennessee Supreme Court. Andrew’s military career which had all started when he was only 13 years old became even more successful when he was elected major general of the Tennessee militia. Jackson later lead troops during the First Seminole War in Florida. General Jackson came from the battlefields of the War of 1812 a national hero. It was during this time he got his nickname which is â€Å"Old Hickory.

How We Learn Essay

‘What have I learned about learning, and what are the implications of this for my future practice?’ In this assignment I will be identifying in a personal way, what I have learnt about learning from my own education and also drawing from my previous experiences. I will also be exploring ways in which I believe, for my future practice as a teacher, children will be able to achieve their full learning potential. â€Å"Learning is a complex concept and activity† (Hewitt 2008) in which every individual does in enabling them to gain new skills or knowledge. Every individual learns in a different way, where as one technique may work well for one individual, it may not work for another. We should never stop learning in order to progress as an individual. In order for the skills and knowledge to remain stored individuals should keep using the skills in which they have acquired overtime. These skills should be applied to different things such as projects so that the skills are remained stored and fresh in the mind. As every individual has a certain learning style, to help us learn more effectively it is best to know and understand our learning style. Through identifying your learning style, you will be able to capitalise on your strengths and improve your self-advocacy skills. Learning a specific subject, knowledge, skill and so on, is down to many factors which play an important role in learning, these include: intelligence; aptitude; goals; interests; readiness & maturation; motivation; self-concept; attitudes & values; level of aspiration; learning style and socio cultural determinants – to name a few. I believe that interests and goals are the catalyst to being a successful teacher. Children’s motivational levels in subjects need to be at a high level in order for the child to reach their full potential with their learning capabilities. â€Å"Interest is one of the most important factors which mediates learning and which motivates to act† (Factors Affecting Learning), if a child is not fully engaged in a particular subject due to low levels of interest then their learning capabilities will not be fulfilled. Whilst working in a school setting in 2010, child A stated†¦Ã¢â‚¬  I can’t do maths – it doesn’t interest me† when there is no interest from the child, as shown in the example, there can be no learning. For my future practice it is vital that every child’s interest is engaged in subjects in order for the child to  fulfil their whole learning capabilities. Young children possess a need for activity, play, adventure etc. and therefore learn much better through a play way approach. This intern arouses their interest in learning and helps sustain their involvement in learning new skills and knowledge through their work. For effective learning to take place, we should be able to relate it to all that we learn. This will enable us to achieve our goals. â€Å"Goals play a significant role in learning since they give strength and direction to it† (Department of Education and Early Childhood Development) because goals help to direct our attention to the task at hand. Psychologist Murphy and Alexander (2000) have wri tten about a variety of goal orientations which help us to understand learners learning and performance especially at a young age. â€Å"The important orientations are the learning goals, performance goals and work avoidance† (British Journal of Educational Psychology). In my future practice as a teacher, in order to gain children’s interest in learning my aim will be to encourage children to be curious and eager to learn. From my work placement in a school setting, children are more successful when they learn to ask questions, think independently and also being very creative. Children need to be curious about the world, interested in how things work, and also know how to creatively approach problems. Child B asked a question†¦Ã¢â‚¬ Do Fly’s sleep?† I resisted answering the question straightaway and asked Child B â€Å"What do you think? Where do you think we could find the answer?†. In responding in this way, I was encouraging Child B to think for themself, this also helps children build their self-esteem. Creativity is a very important tool in every individual’s l earning, â€Å"creativity is essentially a form of problem-solving. But it is a special type of problem-solving–one that involves problems for which there are no easy answers: that is, problems for which popular or conventional responses do not work. Creativity involves adaptability and flexibility of thought. These are the same types of skills that numerous reports on education† (e.g., the Carnegie Report, 1986) have suggested are critical for students (Creativity in Young Children). During my work placement in a school setting, creativity was essential for progressive learning. In order for creativity to take place the school created an environment that allowed the children to explore and play without undue restraints. Also, a key to the successful progression of every child’s learning was that we adapted to  every childs ideas, rather than trying to structure the child’s ideas to fit the adults. Learners need to have the opportunity and confidence to take risks, challenge assumptions, and also see things in a new way. I believe in educating the whole child as education comes from a wide range of experiences. All powerful learning occurs through engagement with others, the process and also the product of this learning is very important. Children learn mainly by modelling, actions speak louder than words. â€Å"The majority of learning is tied to developments and takes time to see results† (Emphatic parenting). In order to teach children, we need to supportively help them understand first. A vital part of all learning is that of reflecting over what the individual has learnt. Every individual matters in the learning process because every individual has equal rights to dignity and also respect. As seen, I have learnt about a vast amount of learning techniques that will enable children to reach their full potential, as well as realising how this will be applied throughout my life as a continual learner. I have also, through-out my educational life and previous experience in my placement, discovered the ways in which I learn. This will now enable me to take this knowledge and skill base and apply this to progress successfully in my future practice as a teacher. Bibliography * P. K. Murphy and P. A. Alexander. A motivated exploration of motivation terminology. Contemporary Educational Psychology 25. 2000. Pages. 3–53. * http://www.kidsource.com/kidsource/content2/Creativity_in_kids.html * http://www.education.vic.gov.au/studentlearning/studentreports/schools/personalgoals/suppdevplg.htm * http://www.unco.edu/cebs/psychology/kevinpugh/motivation_project/resources/pintrich00.pdf * https://docs.google.com/viewer?a=v&q=cache:Q96li6CTQZIJ:pgche09.middlesex.wikispaces.net/file/view/Designing%2BModules%2Bfor%2BLearning.pdf+emerging+beliefs+and+values+about+learning&hl=en&gl=uk&pid=bl&srcid=ADGEESiw1wdWPcNk-ZQBL2ACM-0-W7K9O1lstl04yY3WlPsommKZNp5iTWsBOHljIA1MRtl54C9rRZR-3qAr5EDvHKuYlDM9gfX_60nQdQPd2MKpVMLOWXZLH0h7eLLO3xdmc9TmBKhK&sig=AHIEtbSk1Lb_X3XtcRobYxX30al-Ig7KQw * http://www.egyankosh.ac.in/bitstream/123456789/32872/1/Unit-5.pdf *

Capital Structure In Chemical Industry Of Pakistan Essay Example Pdf - Free Essay Example

Sample details Pages: 15 Words: 4638 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? In the opening chapter, the background, problem discussion and purpose of the study were presented. The chapter ended with the targeted group and limitation of study. Capital structure was one of the most prolific domains of research in corporate finance. Don’t waste time! Our writers will create an original "Capital Structure In Chemical Industry Of Pakistan Essay Example Pdf" essay for you Create order Research was spinning around a few theoretical models of capital structure since over than forty years but could not be able to provide the conclusive assistance to managers and practitioners for choosing between debt and equity in financial decisions. An important question that companies face in need of new finance was whether to raised debt or equity. A number of theories had been proposed to explain the variation in debt ratios across firms. The theories suggested that firms select capital structures depending on attributes that determined the various costs and benefits associated with debt and equity financing. In spite of the continuing theoretical debate on capital structure, there was relatively little empirical evidence on how companies actually select between financing instruments at a given point in time. The problem of capital structure choice had been heavily discussed by international researchers for the last few decades that: What were the determinants of capital structure choice? How did firms choose their capital structures? Given the level of total capital necessary to support a companys activities, was there a way of dividing up that capital into debt and equity that maximize current firms value? And, if so, what were the critical factors in setting the leverage ratios for a given company? Modigliani and Miller (1958) theory was considered as fundamental corporate structure model in the modern corporate finance. The theory ascertained the irrelevance of capital structure to firms value in perfect markets, without taxes and transaction costs. Following on the perfect classification of market, most subsequent research focused to demonstrate that a firms capital structure decision was considered corporate and personal taxes, agency costs, bankruptcy cost, and other frictions. Those aspects of corporate environment were referred as determinants of capital structure. Main research in corporate structure was focused on following two c ompetitive theories: The first one was the traditional static trade-off theory, which derived form the Modigliani and Miller (1963) hypothesis of capital structure irrelevance and suggested that firms choose their optimal capital structures by trading off the benefits and costs of debt and equity. The main benefit of debt was tax deductibility of interest, which was balanced against bankruptcy costs Kim (1978) and agency costs (Jensen Meckling, 1976; Myers, 1977). It suggested the existence of a target optimal capital structure, which companies tried to reached. Contrary to the above was the pecking order theory, developed by Myers and Majluf (1984) which emphasized that there was no target level of leverage and companies used debt only when their internal funds were insufficient, firms instead of aiming towards a target-specific capital structure, choose a type of capital according to the following preference order: internal finance, debt, equity. Myers (1984) and Myers and Majluf (1984) by referring to the existence of information asymmetry between managers (insiders) and investors (outsiders), Insiders knowing more about the value of the firm than outsiders, avoid issuing equity when the shares of the company were undervalued. Being aware of the above fact, outsiders tend to interpret a share issue as conveying unfavourable information as to the value of the firm. As a result, managers were reluctant to raise equity capital because it was typically followed by a decrease in valuation of the companys assets. Therefore, retained earnings were the most preferred sources of funds and, if external financing was needed, a firm first seeks low risk debt. According to the pecking order theory, external equity financing was used as a last resort. Titman and Wessels (1988), as well as Rajan and Zingales (1995), whose work were referred to as the most important empirical studies in the field, found strong negative relationships between debt ratios and profit ability. This evidence was consistent with the pecking order behaviour and inconsistent with the trade-off theory. One of the latest papers in support of the pecking order theory was by Shyam-Sunder and Myers (1999), who explicitly compare it with the static trade-off theory using a panel of US firms. They conclude that, compared to the static trade-off model, the pecking order theory explained more of the variation in actual debt ratios. Even if companies in their sample had well-defined optimal debt ratios, their managers were not trying to obtain them. Many empirical studies had tried to explain the factors that affect on capital structures choice. One of the most renowned initial empirical studies was made by Rajan and Zingales (1995) and they explain the various institutional factors of firms capital structure in the leading industrial countries. Predominantly ongoing debate in corporate finance research sustained the significance of above discussed theories. Majority of research work was based on the facts taken from western and Americans non-financial firms, For example, Rajan and Zingales (1995) study was made on G-7 countries, Titman and Wessels (1988) studied U.S firms, Bevan and Danbolt (2002) studied U.K firms. There were few studies that cover non-financial firms from emerging economies. Although Booth, Aivazian, Demirguc-Kunt, and Maksimovic (2001) had included Pakistan, in his empirical study of developing countries but Hijazi and Shah (2005) were the first to study determinants of firm-level capital structure in Pakistan. They discussed the all listed non-financial firms from period 1997 to 2001. But so far chemical sector of Pakistan has not been analyzed independently. This report presented an empirical analysis of capital structure of chemical sector in Pakistan with most recent available data. The report attempted to extend the knowledge of capital structure and its determinants in Pakistani companies. The aim of the study was t o analyze the determinants of capital structure of chemical sector of the Karachi stock exchange. A variety of variables that were potentially responsible for determining capital structure decisions in companies can be found in the literature. However in the study, the profitability and tangibility were tested as determinants of capital structure in chemical sector. Hypotheses: H1: There is a negative association between capital structure and profitability H2: There is a positive association between capital structure and tangibility 1.4 Outline of the study: Chapter 2 presented the literature review. Chapter 3 presented the research methods that illustrate the empirical methodology and statically tool that had been used. Chapter 4 presented the table assessment table followed by the results and findings. Chapter 5 presented the discussions, conclusion, implications and future research. Definitions 1.5.1 Capital Structure: A mix of a companys long-termÂÂ  debt, specific short-term debt, common equity and preferred equity. The capital structure wasÂÂ  how a firm finances its overall operations and growth byÂÂ  using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equityÂÂ  was classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements was also considered to be part of the capital structure. 1.5.2 Profitability: the ratio of net profit before tax (EBIT), to the book value of total assets PROFITABILTIY=EBIT/TA 1.5.3 Tangibility: the ratio of the book value of depreciated fixed assets (FA) to that of total assets TANGIBILITY=FA/TA CHAPTER 2: LITERATURE REVIEW A capable economic system calls for a reliable system to assign its labour, Capital, resources and optimized leadership of land. This allocation process consists mainly of a set of concealed decisions, which were aimed at by a flexible prices and network of free markets. Imperative with these were capital investments decisions that were very important at two levels, the prospect operability of the firm making the investment, and for the whole economy of the state. Capital investment decisions had inference for many features of operations, and frequently exert a vital impact on endurance, profitability and growth at the firm level. At the state level, the appropriate planning and distribution of capital investment were vital to a well-organized utilization of resources; inadequately placed investment decrease the efficiency of labour and materials and sets an inferior ceiling on the potential output of economy (Rajan Zingales, 1995). The Capital structure was the combination of equity and debt financing. Its option and determinants interrelated with many different factors. Capital structure of a firm illustrates the mode in which a firm increase capital needed to set up and expand its company activities. It was an assortment of various types of debt and equity capital a firm maintained resultant from the financing decisions of firm (Sun Tong, 2002). The capital structure of a corporation was a meticulous combination of equity, debt and other resources of finance that it utilizes to fund its long term asset. The main dissection in capital structure was between equity and debt. The amount of debt financial support was measured by or leverages. There were different aspects that involve a firms capital structure and a firm must effort to found out what its optimal or mix of financing. But determining the precise best capital structure was not a skill, so after analyzing a numeral of factors, a firm institutes a target capital structure which it consider was most favorable (Ramlall, 2009). Capital structure policy besides involves a trade-off among risk and return. By means of more debt elevates the threat in the firms earnings torrent, but a higher amount of debt usually show the way to a higher predictable rate of return and the higher risk connected with greater debt had a propensity to inferior the stocks price. At the same time, however, the higher predictable rate of return makes the stock further eye-catching to investors; in turn, eventually enlarge the stocks price. Therefore, the best capital structure was the one that hit a balance among return and risk to achieve our definitive goal of exploit the stock prices (Barclay Smith, 1999). Around four decades ago the theory established called modern theory of capital structure. Capital structure choice has stirred and enthralled many researchers. Innumerable studies explored into the elucidations of firms capital structure selection, both empirical ones and theoretical s tudies which signify the most favorable choice of capital structure by firms was equilibrium of corporate tax shield in opposition to the bankruptcy cost and agency cost. Although pecking order theory flings doubt on the subsistence of target capital structure, suggestive that firms use debt merely when the inner financing was not available (Rajan Zingales, 1995). Capital structure was principally enduring long term financing of an organization as well as common stock, long term, retain earning and preferred stocks . Even though there has been abundance of study focusing on the main determinants of the capital structure, there was still difference regarding which factors considerably influence a firms capital structure (Titman Wessels, 1988). The association between a firm and capital structure value has been the matter of substantial debate, both in theory and in experiential research. Throughout the past research, discussion has centered on whether there was a best capital structure for a firm or whether the percentage of debt usage was immaterial to the single firms value. Research reveals that in a frictionless world, monetary leverage was not related to firm value, except in a world with tax deductible interest costs, capital structure and firm value were absolutely related further personal taxes to the study and established that best debt usage take place on a macro altitude, although it did not subsist at the firm level. Interest deductibility at the organizations level was counterbalance at the investor level (Dodd Warner, 1983). Capital structure was the firms range of sources of finances used to funding its by and large operations and growth. Short term debt like working capital requirements was also considered part of the capital structure. The stable long term financing of a corporation, together with common stock, long-term debt, preferred stock and retained earnings diverge from financial structure that includes accounts payable and s hort-term debt. Analysts consider capital structure of its overall adequacy (Ramlall, 2009). Capital structure was necessary for the continued existence, performance and growth of an organization. There has been a rising interest globally in recognizing the factors linked among debt leverage. Still, nothing has been done in divergent medium, large sized enterprises (LSEs) and small sized enterprises (SMEs) on these facets. SMEs were very imperative for employment and growth in the manufacturing sector. Experiential studies illustrate that factors effecting capital structure distinguish with firm size. Past study showed that profitability was a main determinant for both size groups of capital structure. However, assets growth and proficient assets management were found necessary for the debt structure of large sized enterprises as contrasting to effectiveness of size, sales growth, current assets and high fixed assets (Titman Wessels, 1988). Capital structure of a firm explain s the way in which a firm increased capital to establish and develop its business activities. It was a combination of different types of debt capital and equity a firm continue consequential from the financing decisions of firms. Capital structure has encouraged and fascinated many researchers. Innumerable studies examine into the clarification of capital structure choice of firms, both empirical ones and theoretical studies. For instance, theory claims the accessible of the best capital structure, point out the optimal choice of firms capital structure that was equilibrium of corporate tax shield in opposition to the agency cost and bankruptcy cost. Past research throw reservation on the subsistence of target capital structure, signifying that firms only use debt once the inner financing was not available (Dodd Warner, 1983). The affiliation between capital structure and industry membership has acknowledged considerable attention. It was generally acknowledged that firms in a k nown business would had alike leverage ratios while vary across industries recognized a relationship between capital structure and industry. These studies all originate that particular industries contain a common leverage ratio which overtime, was comparatively stable. Using industry membership as a substitute for risk class, originate that levered beta principles within dissimilar industries diverse more than unlevered values (Titman Wessesls, 1988). There was a association between the financial leverage and cost of equity, documentation of the industry outcome as one quarrel for the occurrence of an industry allied best capital structure and entail that it was the tax rate and tax code differences across industries that basis the inter industry similarity in leverage ratios (Cook, 1977). It was likely that the expansion of a firm may had an effect on the market response to debt declaration. One might anticipate that a high growth firm could pay to had better financial leverage for the reason that it might generate sufficient earnings to sustain the additional attention expense. Conversely, it may be riskier for a small growth firm to augment its financial leverage as its income may not add to enough to cover the additional fixed obligations. The issuance of debt by providing a device for controlling and monitoring managers by decisive the market response to debt issuance by firms with dissimilar expansion rates (Bradley, Jarrell, Kim, 1984). Large firms were evidently compulsory to accomplish economies of scale in research, production and marketing. The strength of these advantages has been growing as enhanced communications, deregulated capital and rising globalization had preferential multi-national companies. Large sized enterprises by investing in Research and development can innovate directly and consequently lead to a raise of general economic progress. It was also extensively accepted that small sized enterprises had an imperative role in main taining rivalry and in the utilization of new improvement that might be afterward commercialized by large firms (Niu, 2008). Capital structure decisions were the most imperative and vital decisions for any company for the reason of their result on cost and value of the company. Capital structure, a vital feature in a firms performance has engaged economic researchers for a long time. Perfect capital market propositions of the firm were developed on the capital structure can be classified into three categories: agency cost theories, asymmetric information theories and tax based theories. But not any of the above theories makes difference among small and large firms (Dodd Warner, 1983). A competent economic system describes for a reliable instrument to apportion its labor and Capital, resources and optimized management of land. This distribution process consists mostly of a set of classified decisions directed by a set of connections of free markets and elastic prices. Significa nt among these conclusions were the decisions regarding capital investments that were essential at two levels first one was for the future operability of the firm building the investment and secondly for the economy of the country as a complete (Bradley et al., 1984). Capital investment decisions had insinuation for numerous aspects of processes, and often apply a vital impact on continued existence, profitability and growth at the firm level. At the national level, the appropriate development and allocation of capital investment were important to a competent utilization of resources; inadequately placed investment decreases the productivity of labor and materials in addition to sets an inferior ceiling on the potential output of economy (Cook, 1977). In broad-spectrum, debt ratios in rising countries seem to be exaggerated in the similar way and by the identical types of variables that were important in developed countries. However, there were methodical differences in the wa y these ratios were pretentious by country aspect, such as inflation rates, GDP growth rates and the development of capital markets (Rajan Zingales, 1995). Empirical capital structure studies had generated numerous results that attempt to clarify the determinants of capital structure. Consequently a result of these studies, a number of broad kinds of capital structure determinants had emerged. Though, point out that the selection of suitable descriptive variables was potentially controversial (Myers, 1984). Researchers argue that the tax environment, legal environment, technological capabilities, the economic system influence the capital structure in the European countries examined in their study argue that both firm-specific factors and macroeconomic conditions had an consequence on firms financing choices (Sun Tong, 2002). The asymmetry theory of capital structure presume that firm executives or insiders possess confidential information about the distinctiveness of the f irms return river or investment opportunity, which was not recognized to common investors. In an effort to elucidate some financing behaviour was to not steady with the prophecy of static trade-off theory that shows a negative relationship between leverage and profitability give emphasis to that external funds and internal funds were used hierarchically. Firms had a inclination to finance new investment, primary internally with retained earnings and then with debt and lastly with an matter of new equity. The more profitable firms were supposed to hold not as much of debt, because high levels of profits give internal funds at high level (Myers, 1984). Issuing debt protected by collateral may decrease the asymmetric information connected costs in financing. The dissimilarity in information sets among the parties involved may show the way to the moral danger problem (hidden action) or diverse choice (hidden information). Therefore, debt held by collateral may alleviate asymmetric in formation related charge in financing. Consequently, a positive relationship between financial leverage and tangibility may be expected (Sun Tong, 2002). The use of temporary sources of debt, conversely, may alleviate the agency problems, as some attempt by shareholders to take out wealth from debt holders was probable to confine the firms access to interim debt in the instant future (Sun Tong, 2002). The prospective for shareholders to take on actions dissimilar to the benefit of debt holders that was most stern for companies whose worth was predominately accounted for prospect investment opportunities. Growth companies may perhaps also be unwilling to receive on debt in the case if high interest rates or limiting convention compel constraints on their prospect maneuverability. Constant with these forecasts, numerous researchers discover a negative association between the level of gearing and growth opportunities (Niu, 2008). The link between gearing and growth opportuniti es might be different for long term and short term forms of debt. The problem of agency was mitigated if the organizations issues short term to a certain extent than long-term debt. However, even as they found a positive association between the short term debt and growth opportunities, they moreover found long term debt to be positively associated to the MTB (market-to-book) variable although not significant. Thus, the past research indicates the evidence on the impact of growth opportunities in corporate gearing on the cross-sectional variation was quite mixed (Ramlall, 2009). Profitability was defined as the ability of an investment, or a company to make a profit after all costs, overheads, etc. It was also defined as the ratio of profits to the capital that had to be invested to generate these profits. Profit margin was awfully helpful while comparing companies in comparable industries. A higher profit margin signifies a more profitable company that has good control and comman d over its costs and overheads compared to its competitors (Bradley et al., 1984). Larger firms had a propensity to be more diversified and fall short less often, so size may be a contrary substitute for the likelihood of insolvency. The agency conflict between lenders and shareholders may be mainly relentless for miniature companies. Lenders can handle the risk of lending to these companies by restricting the span of maturity offered. These companies can consequently be predictable to contain less long term arrears although probably more short term debt comparing to the larger companies (Jensen Meckling, 1976). The tax deduction of interest payments companies may have a preference debt to equity. This would propose that exceptionally profitable firms would pick to have high levels of debt in classify to attain attractive tax shields. It has been also argued that interest tax shields might be insignificant to companies by means of other tax shields as depreciation. Due to the clash of interest among shareholders and debt providers, lenders come across to risk of undesirable selection and ethical hazard. Lenders may demand sanctuary, and collateral value may be a key determinant of debt finance accessible to companies In particular, Average debt and mainly short term debt ratios in the sample firms come into view to be declining during economic boom and ever-increasing during the economic recession whereas the contradictory was correct for the long term debt (Harris Raviv, 1991). Profitable firms may have improved admittance to debt finance than low profitable firms; the requirement for debt finance might perhaps be at the lower side for high profitable firms if their retained earnings were enough to fund new investments. The pragmatic association between earnings and debt might thus replicate the demand and supply relations. Supply limitation might have had grown to be increasingly marked and thus emerge to become more careful in their lending and i ncreasingly dependent upon sufficient earnings capability of the firm. Previous consequences demonstrate that the largest part noteworthy shift in regression coefficients narrate to the impact on capital structure of profitability. All forms of gearing were pessimistically associated with the point of profitability (Ramlall, 2009). Profitable firms had bigger needs to guard income from corporate tax and should scrounge more than low profitable firms. Whereas pecking order theory proposes an inverse association between the level of debt and profitability. Organizations were assumed to desire internal financing to external financing according to the theory. This liking leads organizations to use retained income as investment funds and shift to external financing simply when retained earnings were inadequate. When facing the preference between equity and bonds, firms would have had a preference debt issue to equity issue. Profitable firms were probable to contain less debt in the ca se (Barclay Smith, 1999). When organizations were able to pledge assets as investment, collateral and borrowing become endogenous. These assets prop up more borrowings that allow for more investment in pledge able assets (Cook, 1977). Investment cash flow sensitivities were rising in the amount of tangibility of controlled firms assets. If firms were unimpeded, investment cash flow sensitivities were unaltered by asset tangibility. Asset tangibility itself may found out whether an organization faces credit constraints with more tangible possessions may had better access to external funds indicating that the association between cash flows and capital expenditure was non monotonic in the asset tangibility (Myers, 1984). Tangibility was defined as the book value of, plants, property and equipment scaled by total assets. The tangible assets were capable to be used as securities in external borrowing, the existence of a big fraction of tangible assets facilitate to obtain bank loa ns at an inferior interest rate. Also, it helps to decrease the threat the lender suffering from the cost of debt (Barclay Smith, 1999). In view of the fact that the debts can be safe of tangible assets by the collateralization, the firms prospect to connect in asset replacement was abridged by the existence of a large portion of secured debts. For those firms that had more intangible assets, than the costs of capital were at the higher side as monitoring was more complicated. Therefore, firms that had a large fraction of tangible assets were probable to have more debt (Ramlall, 2009). To a large extent of the presumption in corporate sector was based on the supposition that the objective of firm must be to make the most of the wealth of its present shareholders. The main reason of setting the goal was financial ratio (Bradley et al., 1984). One of main factors area under discussion to intense contest in capital structure was whether to employ the market cost or the book v alue of equity and debt as the accurate measure of leverage. The main cost of borrowing was the anticipated cost of financial suffering in the happening of insolvency. Financial distress affects the average cost of capital and accordingly the optimal leverage. In the situation, the worth of the distressed firm was ended to its book value. Changes in the market worth of debt do not change the interest tax shield cash investments. Furthermore, if insolvency occurs, the accurate measure of debt-holders liability was the book value of debt and not the market value of debt (Jensen Meckling, 1976). Book values were more effortlessly accessible, accurately recorded and also not focus to market volatility unlike market values. Those who have a preference the market value to book value squabble that the market value eventually decides the real value of an organization. It was probable for an organization to have a negative book value of equity though simultaneously benefit from an affirm ative market value. This was achievable for the reason that a negative book value replicates previous sufferers whereas a positive market value indicates the firms expected future cash flows. In practice, both procedures of market and book values were often used. Previous research demonstrated that adjusted value and market value measures of capital structure in contrast with book value procedures had stronger connection with performance. This way market value must be taken more into consideration in evaluating capital structure (Myers, 1984). Different theories on the subject of capital structure discussed that in competent markets the debt equity option was immaterial to the worth of the firm and remuneration of using debts would recompense with reduce of companies stock (Bradley et al., 1984). Conventional perception believed that by means of financial leverage raise Companys worth. In this admiration, an optimized capital structure that decreases capital costs. It has show ed in past research that in capital market imperfection, interest expenses were tax deductible and firm value would raised with privileged financial leverage. Models on impact of tax, propose that profitable companies must had further debts these firms that more need for tax organization in corporations earnings. Conversely, rising debt may results in possibility of increasing bankruptcy. Therefore, the best capital structure corresponds to a level of influence that balances insolvency costs and reimbursement of debt finance. Firms most favorable capital structure would engage the exchange among the effects of personal and corporate taxes, insolvency costs and agency costs, etc (Harris Raviv, 1991). Research theory proposes separation of possession and direct and conflicts of attention between groups of agents. One of the main problems that effect conflict among shareholders and managers was free cash flows. therefore, in the companies that had soaring cash flow and profitabilit y , rising of debts can be used as a contrivance of