capital structure


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Capital structure

The makeup of the liabilities and stockholders' equity side of the balance sheet, especially the ratio of debt to equity and the mixture of short and long maturities.

Capital Structure

How a company finances its operations. The three most basic ways to finance are through debt, equity (or the issue of stock), and, for a small business, personal savings. Capital structure usually refers to how much of each type of financing a company holds as a percentage of all its financing. Generally speaking, a company with a high level of debt compared to equity is thought to carry higher risk, though some analysts do not believe that capital structure matters to risk or profitability.

capital structure

capital structure

the composition of a JOINT-STOCK COMPANY'S long-term capital which reflects the source of that capital, for example SHARE CAPITAL and long-term LOAN CAPITAL. See CAPITAL GEARING.

capital structure

See capital stack.
References in periodicals archive ?
MUHAMMAD AZAM KHAN: Corporate finance is the area of finance dealing with the sources of funding and the capital structure of corporations, the actions that take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources.
Since the publication of Durand's work (1952) and Modigliani and Miller (1958) that generated the debate about the companies' capital structures, where many empirical studies have been dedicating in the verification of a great capital structure verification.
The aim of this paper is to empirically investigate whether capital structure choice influences firm profitability or not in listed non-financial firms of Pakistan.
We show that firms with high capital structure tend to have a larger volatility for future earnings or cash flows.
Capital structure refers to the mix of debt and equity used by a firm in financing its assets.
According to the modern literature of financial security, the agency conflicts are considered as determinant factor of the capital structure of the companies.
The term Capital Structure of a company refers to constitution of its capital employed (as shown on the liabilities side of its balance sheet), i.
The capital structure of a business is the mix of types of debt and equity the company has on its balance sheet.
What has driven the recent growth, according to Cross, are two "macro factors: an aggressive search for yield by investors up and down the capital structure (increasing supply), and a broadened acceptance of the product by both senior lenders and borrowers (increasing demand) .
The key to obtaining capital is layering each piece of the capital structure together so that the completed capital stack can meet the owner's needs.
Extant capital structure research examines either cross-sectional variation or time-series variation relating to changes in certain macroeconomic conditions, such as tax laws.
Dallas-based Capital Senior Living Corporation (CSL) is taking steps to simplify its capital structure, capture 100 percent of the appreciation of its assets, continue its growth, and maximize value to shareholders through enhanced cash flow and higher net asset values.