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 ?
Vijayakumaran and Vijayakumaran (2018), evaluated the nexus between capital structures and corporate profitability in the context of Chinese Stock Exchange.
Keywords: Capital Structure; Profitability; Oil and Gas Industry; Debt and Equity Mix.
"The trend for year-to-date 2018 is consistent with late-cycle characteristics to accept leverage maximization in LBO capital structures and dividend recapitalizations," said Sharon Bonelli, Senior Director of Leveraged Finance.
Capital structures of second-lien issuers are highly leveraged.
Partial adjustment toward target capital structures. Journal of Financial Economics, 79(3), 469-506.
The dynamic adjustment towards target capital structures of firms in transition economies.
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.
Academically it adds to the already limited empirical studies on capital structures involving panel data models.
Because assets can vary in these and other ways, different assets will result in different optimal capital structures.
It has been 56 years since the publication of the seminal work that both gave rise to corporate finance as we know it and also led capital structures studies to catch so much attention from economy and financial areas.
"Capital structures in developing countries", Journal of Finance, Vol.56, pp.87-130
However, most of the empirical investigations have focus on internal factors whereas the impact of macroeconomic variables on capital structure decisions is somewhat under researched particularly in the context of developing countries.