ABSTRACT
There are at least three reasons why an in-depth discussion on this subject seems to be purposeful. First, the capital structures of public enterprises are, by and large, not the product of market discipline but owe to a degree of deliberate decision on the part of the concerned agencies in the government. Second, the capital structures have, through their results governed by institutional conventions, an impact on the public exchequer and, consequently, on the government budget. Third, some public enterprises operate in areas where private enterprises also operate; besides, a large number of mixed enterprises have been emerging, in which public and private shareholders assume joint ownership of the capital. Two apparently related issues are kept out of the present analysis, viz., the criteria of investment and the procurement of capital, except for marginal comments on their impacts on the capital structures.
