"Dynamics of Capital Structure" is a specialized book that addresses the financing policies of companies and their impact on capital structure. It examines the interactions between the tax advantages of debt financing, the costs of recapitalization, and the financial burdens arising from external developments and liberalization policies. In recent years, corporate behavior regarding indebtedness has gained significance due to recurring financial crises. This book expands the theoretical analysis of optimal capital structure by integrating the role of financial development in the corporate sector into a deterministic model. It describes the financial behavior of companies within a dynamic model that considers specific variables and the state of financial liberalization. The aim of the study is to provide a natural explanation of how financial liberalization can influence indebtedness and what effects this may have on the likelihood of insolvencies as well as on the fluctuations of the business cycle.