The Modigliani-Miller theorem states that a company’s capital structure doesn’t affect its value in perfect markets. While this theory is one of the foundational theories on capital structure ...

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 .

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 Traditional Theory of Capital Structure states that a firm's value is maximized when the cost of capital is minimized, and the value of assets is highest. Skip to content. News ...

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 ...

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 ...