Capital structures

Introduction: This page is the main page for information about capital structures. These structures are of major importance in corporate governance because they affect the incentives of managers and thereby the efficiency of the firm. The capital structure is defined by the firm’s policy with regard to leverage and dividend payments. A classic reference on capital structures is Jensen [1986].

Content

• Table: Effects of capital structures on corporate performance and other other kinds of institutions of relevance for corporate governance.
• Table: International corporate governance - Tentative characterizations of legal and empirical state of large firm capital structures as of 1980-95: 1) Developing countries. 2) Germany. 3) Japan. 4) Anglo-American countries. 5) Denmark.
• Model: The irrelevance of capital structure in perfect capital markets.