This article presents a new capital structure model based on four factors well documented in literature: asymmetric information, taxes, bankruptcy costs and decision-makers' overconfidence. The model can simultaneously explain several facts about capital structure including those that remain...

This book focuses on microeconomic foundations of capital structure theory. It combines theoretical results with a large number of examples, exercises and applications. The book examines fundamental ideas in capital structure management, some of which are still not very well understood in the...

Section 1: Basic Capital Structure Ideas -- Chapter 1: Introduction -- Chapter 2: Modigliani-Miller Proposition and Trade-off Theory -- Chapter 3: Asymmetric Information and Capital Structure -- Chapter 4: Credit Rationing and Asset Substitution -- Chapter 5: Debt Overhang -- Chapter 6: Capital...