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

Cogent Economics & Finance

Peter Brusov¹  Tatiana Filatova¹  Natali Orekhova² 

[1] Financial University under the Government of the Russian Federation;Institute of Business, Management and Law;

关键词: optimal capital structure;    trade off theory;    Brusov–Filatova–Orekhova (BFO) theory;    Modigliani–Miller theory;   

DOI  :  10.1080/23322039.2014.946150

来源: DOAJ

【 摘 要 】

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 determined by growth of debt volume. This mechanism is absent in perpetuity Modigliani–Miller theory, even in modified version, developed by us, and exists within more general modern theory of capital cost and capital structure by Brusov–Filatova–Orekhova, or BFO theory..

【 授权许可】

Unknown