In this approach to Capital Structure Theory, the cost of capital is a function of the capital structure. It's important to remember, however, that this approach assumes an optimal capital structure .

Notable theories include the Modigliani-Miller theorem, the trade-off theory and the pecking order theory. The Modigliani-Miller theorem states that a company’s capital structure doesn’t ...

The capital structure of a company directly impacts its profitability and ability to continue as a going concern. If a company is over-leveraged and cash flows are insufficient to meet recurring ...

The past decade has seen an extraordinary proliferation in ideas and theories about the two sides of the corporate financial management coin: capital structure and capital asset management. One ...

There are new theories emerging now in the business world. One of these is the merging of capital and insurance markets which is now more widely known by the term, alternative risk transfer (ART). I ...

Capital structure theories seek to explain why businesses choose different mixes of debt and equity to finance their operations. Banking firms represent a special case because of certain unique ...

We study capital controls on outflows (CCOs) in situations of macroeconomic and financial distress. We present novel empirical evidence indicating that CCO implementation is associated with crises and ...