11 Pages Posted: 7 Nov 2010
Date Written: November 5, 2010
Continuing this series on the theory of financial management, the current article investigates capital structure, offering insight into the roles of stockholder wealth maximization, the risk-return trade-off, and agency conflicts. Much literature addresses this topic, and some of the most recent literature challenges certain theoretical cornerstones touted in the textbooks, as revealed in this work.
Keywords: capital, stock, stockholder, risk, return, agency
JEL Classification: L2, K2
Suggested Citation: Suggested Citation
By Judith Laux
By Ivo Welch