Most of the capital structure theories have been examined in developed countries but the extent to which the different theories of capital structure are appropriate to developing economies has become increasingly important with the globalization of financial markets in recent years. On the other hand debt ratios in developing countries seem to be affected in the same way that is significant in developed countries. However, there are systematic differences in the way these ratios are affected by country factors, such as GDP. And thus, this paper has exhaustively examined the impact of managerial shareholding on corporate capital stricture decisions in case of selected non-state owned companies in Ethiopia. Further, the paper is paramount important for managing bodies, policy makers and higher responsible bodies and the students as well by enabling them to give insights how they develop optimal capital structure and efficient market internally.