Bankruptcy Risk and the Choice of Financial Structure

Abstract

The research reported in this paper was undertaken as part of the International Institute of Management's on‐going research into the impact of the capital market's valuation of firms' shares on corporate policy. This paper treats a basic theoretical issue in the valuation of the firm, i.e. the impact of bankruptcy risk on a firm's optimal financial strategy.

Citation

Levy, H. and Sarnat, M. (1978), "Bankruptcy Risk and the Choice of Financial Structure", Management Research News, Vol. 1 No. 3, pp. 8-9. https://doi.org/10.1108/eb027705