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The Dynamics of Corporate Debt Management, Decision Rules, and Some Empirical Evidence

Published online by Cambridge University Press:  19 October 2009

John C. G. Boot  and
George M. Frankfurter
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Extract

This study deals with the problem of debt — composition of the firm — specifically, the optimal mix of short- and long-term debt, or the optimal maturity composition of the total debt. It can be viewed as a subproblem of the more familiar determination of the optimal mix between total debt and owner's equity (Modigliani and Miller [15 and 16], Durand [3], Schwartz [18], Solomon [20], etc.).

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 7 , Issue 4 , September 1972 , pp. 1957 - 1965
Copyright
Copyright © School of Business Administration, University of Washington 1972

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