Introduction

Peter Brusov, Tatiana Filatova and Natali Orekhova
Additional contact information
Tatiana Filatova: Financial University under the Government of Russian Federation
Natali Orekhova: Financial University under the Government of Russian Federation

Chapter Chapter 1 in The Brusov–Filatova–Orekhova Theory of Capital Structure, 2023, pp 1-6 from Springer

Abstract: Abstract In the monograph the foundation of modern corporate finance and investment is laid. It is based on the authors’s works on modifying theory of capital cost and capital structure by Nobel Prize winners Modigliani and Miller, which led to the actual replacement of this theory by the modern theory by Brusov–Filatova–Orekhova (BFO theory) (Brusov et al. Appl Financ Econ 21:815–824, 2011a; Res J Econ Bus ICT 2:16–21, 2011b; Res J Econ Bus ICT (UK) 2:11–15, 2011c; Appl Financ Econ 22(13):1043–1052, 2012a; J Rev Glob Econ 1:106–111, 2012b; J Rev Glob Econ 2:94–116, 2013a; J Rev Glob Econ 2:183–193, 2013b; Cogent Econ Financ 2:1–13, 2014; Filatova et al. Bull FU 48:68–77, 2008). The authors have moved from the assumption of Modigliani–Miller concerning the perpetuity (infinite time of life) of companies and further elaborated quantitative theory of valuation of core parameters of financial activities of companies with arbitrary time of life. The BFO theory has been generalized to the case of variable income, to arbitrary frequency of income tax payments, to advance payments of income tax, etc., as well as to their combinations. These generalizations significantly expand the applicability of BFO theory in practice, in particular, in corporate finance, business valuation, investments, ratings, etc.

Keywords: Capital structure; Modigliani–Miller (MM) theory; Brusov–Filatova–Orekhova (BFO) theory; Trade-off theory; Generalized BFO theory (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-27929-4_1

Ordering information: This item can be ordered from
http://www.springer.com/9783031279294

DOI: 10.1007/978-3-031-27929-4_1

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().