This paper is the text of the Keynote Address delivered at the Eastern Finance Association's 2012 Annual Meeting in Boston. I am grateful for the helpful comments received from Diane Denis.
The Persistent Puzzle of Corporate Capital Structure: Current Challenges and New Directions
Article first published online: 13 SEP 2012
© 2012, The Eastern Finance Association
Volume 47, Issue 4, pages 631–643, November 2012
How to Cite
Denis, D. J. (2012), The Persistent Puzzle of Corporate Capital Structure: Current Challenges and New Directions. Financial Review, 47: 631–643. doi: 10.1111/j.1540-6288.2012.00347.x
- Issue published online: 13 SEP 2012
- Article first published online: 13 SEP 2012
- capital structure;
- financial flexibility
This paper is the keynote address from the Eastern Finance Association's 2012 meeting in Boston. I assert that, despite a substantial amount of work and much progress in the capital structure field, traditional models do a remarkably poor job of explaining the dynamics of observed capital structures. New approaches that focus on the firm's intertemporal access to capital appear to represent the most promising avenues for yielding fresh insights.