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Factor‐product markets and firm's capital structure: A literature review

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  • Abdulaziz Istaitieh
  • José M. Rodríguez‐Fernández

Abstract

We present an overview of the literature that links capital structure and factor‐product markets. These studies relate some elements of the modern financial theory to the stakeholder theory, industrial organization, and firms' strategic management. Three main points are highlighted. First, the relevant role of non‐financial stakeholders in capital structure design. Second, the interactions between capital structure and market structure. Third, the two‐direction effect between the firm's capital structure and its strategic behavior in product markets. Our study aims to build an index for the existing works to guide researchers for new ideas and possible advances.

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  • Abdulaziz Istaitieh & José M. Rodríguez‐Fernández, 2006. "Factor‐product markets and firm's capital structure: A literature review," Review of Financial Economics, John Wiley & Sons, vol. 15(1), pages 49-75.
    • Handle: RePEc:wly:revfec:v:15:y:2006:i:1:p:49-75
    DOI: 10.1016/j.rfe.2005.02.001
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