Firm's Capital Structure and Factor-Product Markets: A Theoretical Overview
University of Valladolid - Department of Economics and Business Administration
José Miguel Rodríguez Fernández
University of Valladolid - Department of Finance and Accounting
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, industrial organization, and firm's strategic management. Three main points could be highlighted. First, the relevant role of non-financial stakeholders in capital structure design. Second, the interactions existing between capital structure and market structure. Third, the two-direction effect between the firm's capital structure and its strategic behavior in product markets.
Number of Pages in PDF File: 38
Keywords: Capital structure, factor-product markets, stakeholder theory, market structure, strategic behavior
JEL Classification: G32, L11working papers series
Date posted: December 20, 2003
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