Corporate Strategy: Useful Perspective for the Study of Capital Structure?

Abstract

The idea of joining strategy literature and financial literature to address the capital structure question arose in two ways. Financial scholars, unable to agree on a desirable mix of debt and equity, have called for managerial inputs. Likewise, strategy scholars have called for inputs from functional areas such as finance. The product of this joint review is a set of propositions suggesting that a strategy perspective might help to explain the capital structure decision.