December 2015
Article
Journal of Financial Economics

Introduction: New Perspectives on Corporate Capital Structure

By: Viral Acharya, Heitor Almeida and Malcolm Baker

Format:Print

Abstract

The National Bureau of Economic Research held a symposium titled "New Perspectives on Corporate Capital Structures" on April 5–6, 2013 in Cambridge, Massachusetts. In its call for the submission of theoretical and empirical papers for the symposium, the NBER noted that the global financial crisis of 2007–2008 and its aftermath have focused attention on the growing use of leverage by financial intermediaries and on the evolving structure of corporate debt markets—and given rise to new questions about the private and social costs and benefits of leverage and, in particular, the role of leverage in affecting the likelihood and extent of systemic financial distress. On the other hand, rising levels of cash on hand at many non-financial firms have highlighted a "low-leverage puzzle" and raised questions about the implications of cash holdings for corporate investment and economic growth.

Keywords

Capital Structure; Economic Growth; Financial Crisis; Corporate Finance

Citation

Acharya, Viral, Heitor Almeida, and Malcolm Baker. "Introduction: New Perspectives on Corporate Capital Structure." Journal of Financial Economics 118, no. 3 (December 2015): 551–552.