This chapter summarizes the major theoretical and empirical contributions of the financial economics and law and economics literature on the use of debt in corporate financing. It then derives implications for corporate governance, contract law and practice, and organizational law. Because the...

Banks’ lending decisions to small firms are not based on financial ratios, while suppliers lend to clients with strong sales. So entrepreneurial firms might find it easier to borrow from banks, and rely more on bank lending than on supplier lending. We further find that suppliers are quite...

According to Manson, McCartney & Sherer (2017) it is necessary to adopt debt financing if the organization is financial distressed. Despite embarking on debt financing to boost their financial performance, mining firms such Dallaglio investments are faced with challenges which are centred on...