CORPORATE STRATEGY AND CAPITAL STRUCTURE

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.

[1]  S. L. Barton,et al.  Corporate Strategy: Useful Perspective for the Study of Capital Structure? , 1987 .

[2]  Michael G. Ferri,et al.  Determinants of Financial Structure: A New Methodological Approach , 1979 .

[3]  Manak C. Gupta.  THE EFFECT OF SIZE, GROWTH, AND INDUSTRY ON THE FINANCIAL STRUCTURE OF MANUFACTURING COMPANIES , 1969 .

[4]  R. Rumelt,et al.  Diversification strategy and profitability , 1982 .

[5]  R. Bettis.  Performance differences in related and unrelated diversified firms , 1981 .

[6]  J. Edward Ketz,et al.  Financial Ratio Patterns in Retail and Manufacturing Organizations , 1983 .

[7]  Willard T. Carleton,et al.  JOINT DETERMINATION OF RATE OF RETURN AND CAPITAL STRUCTURE: AN ECONOMETRIC ANALYSIS , 1977 .

[8]  K. Andrews.  The Concept of Corporate Strategy , 1971 .

[9]  Norman E. Toy,et al.  A Comparative International Study of Growth, Profitability, and Risk as Determinants of Corporate Debt Ratios in the Manufacturing Sector , 1974, Journal of Financial and Quantitative Analysis.

[10]  D. Hambrick.  An Empirical Typology of Mature Industrial-Product Environments , 1983 .

[11]  Alfred Dupont Chandler,et al.  战略与结构 : 美国工商企业成长的若干篇章=strategy and structure : chapters in the history of the American industrial enterprise , 1962 .

[12]  R. Bettis.  Modern Financial Theory, Corporate Strategy and Public Policy: Three Conundrums , 1983 .

[13]  M. Rappa.  Capital Financing Strategies of the Japanese Semiconductor Industry , 1985 .

[14]  G. A. Whitmore,et al.  BEYOND SHAREHOLDER WEALTH MAXIMIZATION , 1974 .

[15]  Paul Marsh,et al.  The Choice Between Equity and Debt: An Empirical Study , 1982 .

[16]  Cynthia A. Montgomery,et al.  Corporate economic performance: Diversification strategy versus market structure , 1981 .