Capital structure is a term that describes the proportion of a company’s capital, or operating money, that is obtained through debt versus the proportion obtained through equity. Debt includes ...

The National Bureau of Economic Research held a symposium titled "New Perspectives on Corporate Capital Structures" on April 5–6, 2013 in Cambridge, Massachusetts. In its call for the submission of ...

In corporate finance, capital structure refers to the breakdown of a company's monetary sources. Whether a company elects to finance its operations through borrowing or shareholder funds makes an ...

Theoretical Frameworks Shaping Capital Structure Decisions Given the criticality of the financing decision and its impact, several theories attempt to explain how firms choose their capital ...

What Are Capital Budgeting and Capital Structure?. The day-to-day decisions a small business owner makes are typically operational -- how much to charge, for example, or how to arrange a store or ...

A balanced capital structure refers to the optimal mix of debt and equity financing that enables both parties to the M&A deal to achieve their strategic objectives.

Learn how capital structure theory relates to financial management and the methods in which companies attempt to raise capital and market values.

A recapitalization is a form of corporate reorganization involving a change in a company’s capital structure (that is, its debt and equity mix). For the purpose of this article, we focus on ...

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 ...

The Modigliani and Miller propositions on the irrelevancy of capital structure and dividends are shown to be valid in a large class of models with asymmetric information. The main assumption is that ...