Journal of Finance Vol. 46 No. 1 1991
The Theory of Capital Structure
Abstract
This paper surveys capital structure theories based on agency costs, asymmetric information, product/input market interactions, and corporate control considerations (but excluding tax‐based theories). For each type of model, a brief overview of the papers surveyed and their relation to each other is provided. The central papers are described in some detail, and their results are summarized and followed by a discussion of related extensions. Each section concludes with a summary of the main implications of the models surveyed in the section. Finally, these results are collected and compared to the available evidence. Suggestions for future research are provided.
- DOI
- 10.1111/j.1540-6261.1991.tb03753.x
- Volume
- 46
- Issue
- 1
- Pages
- 297-355
- Language
- en
- Sources
- openalex crossref