The company financing decision defines one of the most controversial areas of research in corporate finance theory. Identifying the optimal capital structure involves determinants of financing policy but also aspects that relate to corporate governance practices adopted by the firms. Studies of...

We estimate the impact of effective profit taxation on the financial leverage of corporations on the basis of a pseudo-panel constructed from corporate tax return micro data for the period 1998-2001, a period which saw the introduction of a major corporate tax reform in Germany. The financial...

A dynamic theory of the small firm is expounded, assuming entrepreneurs maximise business value over a finite time horizon. Its predicted trajectories for key financial variables depend on which of debt and equity are cheaper. The predictions are compared with empirical evidence constructed from...

We characterize the optimal financial structure as a strategic de- vice to optimize the value of a firm competing in a market whose struc- ture is endogenous. Contrary to traditional results based on duopolies and depending on the form of competition, we show the general opti- mality of moderate...

The purpose of this paper is to investigate empirically the determinants of financial structure in the Moroccan manufacturing firms. The paper contributes to the empirical literature on capital structure in developing countries. It relies on the data collected by the Firm Analysis and...

This paper presents a model that relates a multinational firm's optimal debt policy to taxation and to non-tax factors such as the desire to prevent bankruptcy. The model yields the predictions that a multinational's indebtedness in a country depends on national tax rates and differences between...

Starting from the need to optimize the financial structure of the enterprise, the article aims to review a few concepts related to financial structure and bankruptcy risk, the presentation of the bankruptcy risk analysis based on assets balance sheet, liquidity ratios and last, but not least,...

The creation of an optimal financial structure of the invested capital will allow the act of minimizing the balanced medium cost of the capital and implicitly the act of maximizing the enterprise value. As a result, there exists a interdependence between the capitals’ costs – financial...

This paper has like objective to present the main aspects concerning financial structure of the firm. So, we begin from the fact that the theory and the practice doesn’t find an answer at the question if a firm is too much or enough debt, we search after a short definition of financial...

The basic objective of the financial function of the company is the continuous increase of the company’s value, so that there can be achieved a maximization of its value in comparison with the assets structure they form. The financial structure of the company is one of the most important...