Alternative Theories of Capital Structure
Year: 2015
Type: article
Abstract: The beginning of the study of financing mix is after the Modigliani and Miller theorem and its unrealistic assumptions under which the source of finance does not impact the capital structure of the firm. Continuously after the M-M theorem new theories are developed. In this paper we are going to look at these alternative theories for sources of financing with a specific detail on the: Trade off theory and Pecking order theory. We provide evidence how this theories cope in practice of business.
Source: European Scientific Journal ESJ
Authors: Seadin Xhaferi, Besa Xhaferi
Institution: State University of Tetova
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W1601098325