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 ...

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 ...

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 ...

Fruhan, William E., Jr. "Note on the Theory of Optimal Capital Structure TN." Harvard Business School Teaching Note 292-047, January 1992.

This study investigates the impact of foreign direct investment (FDI) and export on capital structure for firms in emerging economies. The hypotheses are developed based on an agency theory ...

A company needs financial capital to operate its business. For most companies, financial capital is raised by issuing debt securities and by selling common stock. The amount of debt and equity that ...

When seeking investment quality, the balance sheet tells the story Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities.