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Various finance theories, evolved at different points of time, mainly underline the fundamental aspects of finance. The role of finance in the market has been explained by numerous economists with the help of different finance theories

Trade-off theory of capital structure refers to the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits . Trade-off theory of capital structure basically entails offsetting the costs of debt against the benefits of debt.

Capital Market Theory tries to explain and predict the progression of capital (and sometimes financial) markets over time on the basis of the one or the other mathematical model.

Scientific works in the theories of money and credit, according to the requirement of the research object, are characterized to be many-sided and many-leveled.

Dividend decision refers to the policy that the management formulates in regard to earnings for distribution as dividends to shareholders. Dividend decision determines the division of earnings between payments to shareholders and retained earnings .