Capital Structure Theory: a Current Perspective

ArXiv ID: ssrn-909392 “View on arXiv”

Authors: Unknown

Abstract

Finance scholars’ approach to capital-structure issues reflects a progression of thought over time. This note provides an overview of the current state of capit

Keywords: Capital Structure, Corporate Finance, Debt Policy, Financial Management, Equities

Complexity vs Empirical Score

• Math Complexity: 3.0/10
• Empirical Rigor: 2.0/10
• Quadrant: Philosophers
• Why: The paper discusses theoretical capital structure concepts with conceptual frameworks and models, but lacks complex formulas, empirical data, or implementation details, focusing instead on theoretical perspectives.

  flowchart TD
    A["Research Goal: Identify current state of capital structure theory"] --> B["Methodology: Literature review & analysis"]
    B --> C["Data: Historical finance scholarship & empirical studies"]
    C --> D["Process: Synthesis of key theories & trends"]
    D --> E["Outcome 1: Shift from static trade-off to market timing"]
    D --> F["Outcome 2: Context-dependent optimal structure"]