O'Reilly logo

Handbook of Empirical Corporate Finance by B. Espen Eckbo

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 13 CAPITAL STRUCTURE AND CORPORATE STRATEGY

CHRIS. PARSONS

McGill University

SHERIDAN. TITMAN

University of Texas

Abstract

In this chapter we review and discuss empirical studies that examine how a firm’s financing choice affects its strategic decisions and relationships with its nonfinancial stakeholders, such as its customers or workforce. Generally, high leverage appears to inhibit a firm’s ability or willingness to compete aggressively, especially against wellfinanced competitors. Debt also ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required