Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Gordon Scott has been an active investor and technical analyst or 20+ years. He ...
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
Capital structure refers to the mix of funding sources a company uses to finance its assets and its operations. The sources typically can be bucketed into equity and debt. Using internally generated ...
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 debt ...
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 ...
Vol. 39, No. 2, Evolution and Revolution in International Management: A Topic and a Discipline in Transition (1999), pp. 105-136 (32 pages) A critical reflection of previous capital structure theories ...
Small Business Economics, Vol. 47, No. 2, Special Issue: Small Business, Innovation, and Entrepreneurship (August 2016), pp. 535-550 (16 pages) Prior work examining the antecedents of capital ...
The Modigliani-Miller theory of bank capital posits that higher capital requirements result in negligible costs for banks, making them an effective way for regulators to increase the safety of banks ...
Austrian Business Cycle Theory (ABCT) provides a framework for understanding economic fluctuations, particularly how monetary policy and interest rates influence investment and capital valuation. This ...