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Corporate growth, corporate strategy, and the choice of capital structure
Author(s) -
Kracaw William A.,
Lewellen Wilbur G.,
Woo Carolyn Y.
Publication year - 1992
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090130607
Subject(s) - capital structure , dimension (graph theory) , economics , microeconomics , norm (philosophy) , strategic choice , product (mathematics) , capital (architecture) , industrial organization , business , finance , political science , geometry , mathematics , archaeology , pure mathematics , law , history , debt
Abstract The interaction between a firm's strategic decisions and its financial policies has become an increasingly frequent topic in the managerial economics literature. We examine here a dimension of that interaction that has not previously been addressed, and suggest a new framework for defining the manner in which choices of strategy and choices of capital structure might be jointly determined, in an environment where upward pressures on factor costs and product prices are the norm.