Mechanism of formation of the company optimal capital structure, different from suggested by trade off theory

Under condition of proved by us insolvency of well-known classical trade off theory it becomes important to identify mechanisms for forming the optimal capital structure of a company. This paper presents one of the real such mechanisms based on the decrease of debt cost with leverage, which is deter...

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Bibliographic Details
Main Authors: Peter Brusov, Tatiana Filatova, Natali Orekhova
Format: Article
Language:English
Published: Taylor & Francis Group 2014-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:http://dx.doi.org/10.1080/23322039.2014.946150