Advanced Search
MyIDEAS: Login to save this article or follow this journal

Corporate finance theories. Challenges and trajectories


Author Info

  • Mihaela Brînduşa TUDOSE

    (“Gh. Zane” University of Iaşi)

Registered author(s):


    The aim of this paper is to examine the evolution of corporate finance theories in order to outline already established and future trajectories. Compared with the earliest theories developed in the field (which mainly focused on the capital structure irrelevance), specialist literature has been enriched with wide-ranging debates on identifying the implications of financial decisions on the firm’s value, corporate governance, market strategies, etc. The existing body of theories on corporate finance has provided analytical frameworks vital for grounding, understanding and implementing firms’ capital structure policies. However, the theories developed have certain limitations, which pose challenges for further research. After a brief description of the main theories developed in the field, the study presents the drivers that prompted various researches in the area of firms’ financing. The study suggests that the evolution of corporate finance theories bears the mark of the dominant trend in contemporary science – designing new theories that overturn tradition.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Article provided by Economic Publishing House in its journal Management & Marketing.

    Volume (Year): 7 (2012)
    Issue (Month): 2 (Summer)

    as in new window
    Handle: RePEc:eph:journl:v:7:y:2012:i:2:n:6

    Contact details of provider:

    Related research

    Keywords: capital structure; corporate finance theories; trade-off theory; pecking order theory; agency theory; capital structure and factorproduct markets; market timing theory.;


    No references listed on IDEAS
    You can help add them by filling out this form.



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:eph:journl:v:7:y:2012:i:2:n:6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Simona Vasilache).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.