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Corporate strategy and capital structure
Author(s) -
Barton Sidney L.,
Gordon Paul J.
Publication year - 1988
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250090608
Subject(s) - capital structure , diversification (marketing strategy) , antecedent (behavioral psychology) , perspective (graphical) , business , complement (music) , strategic management , economics , industrial organization , financial economics , accounting , marketing , finance , psychology , debt , developmental psychology , biochemistry , chemistry , artificial intelligence , complementation , computer science , gene , phenotype
Abstract The basic thesis of this exploratory investigation was that a corporate strategy perspective may complement the traditional financial paradigm in explaining capital structure in large U.S. corporations. Earlier fusion of strategic and financial literature led to a series of propositions antecedent to this work. Inclusion of Rumelt's diversification categories plus elsewhere validated financial contextual variables led to hypotheses for the present study. Results suggest a managerial choice perspective may help to explain the capital structure choice at the firm level of analysis.