Home  Journals  Finance and Credit  5(581) - 2014 February

In search of the optimal capital structure

Available online: 7 February 2014

Subject Heading: CORPORATE FINANCE

JEL Classification: 

The basic theories of capital structure are discussed in this article: static trade-off, dynamic trade-off and pecking order. As the results of empirical studies, none of the presented theory could not become the methodology for the financial policy of real companies. This analysis allows of coming to the conclusion that it is necessary to develop more sophisticated concept of financial architecture, which combines not only the capital structure, but also the ownership structure, the organizational forms and the quality of corporate governance.

Keywords: optimal capital structure, static trade-off, dynamic trade-off, pecking order, cost of financial distress, tax shields, adverse selection, funds flow deficit

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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