“…Titman and Wessels, 1988;Rajan and Zingales, 1995;Booth, Aivazian, Demiguc-Kunt and Maksimovic, 2001;Lally, 2002), and testing the various well-known theories of capital structure (Frank and Goyal, 2003;Flannery andRangan, 2006, Dang, 2010). Recent studies have attempted to examine the leverage -return relation (Dimitrov and Jain, 2008;Penman et al 2007;Korteweg, 2009;George and Huang, 2009;Muradoglu and Sivaprasad, 2009).…”