The objective of this work is to offer a theoretical overview of the literature that links capital structure and factor-product markets, in order to show what we do know about these connections. This literature relates some elements of the modern financial theory to the stakeholder theory,...

New connections between firm's financial policy, stakeholder theory, and firms' strategic behavior have emerged. First, according to the stakeholder theory, firm's non-financial stakeholders should be taken into account as claimants to the firm's cash flow because they affect debt level. Second,...

A new literature linking capital structure and factor-product markets has been under focus in the last few years. This literature relates some elements of the modern financial theory to the stakeholder theory, market structure, and firm's strategic behavior. In this paper, we will examine the...