Capital Structure Analysis: Some Examples

Anton Miglo ()
Additional contact information
Anton Miglo: Toronto School of Finance

Chapter Chapter 13 in Capital Structure in the Modern World, 2025, pp 261-275 from Springer

Abstract: Abstract This chapter analyzes the financing decisions and capital structures of Facebook and United Continental Holdings (UCH). Facebook’s profits are strong, it has low debt and it made an IPO. The chapter argues that their policy is not directly consistent with traditional theories. However, it may be consistent with some new ideas including the flexibility idea and the spirit of their business model where members serve dual roles as both the suppliers and the consumers of content. Unlike Facebook, UCH assets are mostly tangible, their debt ratio is higher and public issues of shares are not common. Chapter 10 argues that it is more consistent with traditional theories. The chapter also discusses the role of new ideas including debt as a commitment in bargaining with unions and the government.

Keywords: Need for flexibility; Unique business model and corporate culture; Low degree of separation between ownership and management; Debt tax shield; Debt and discipline (search for similar items in EconPapers)
Date: 2025
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:978-3-031-85459-0_13

Ordering information: This item can be ordered from
http://www.springer.com/9783031854590

DOI: 10.1007/978-3-031-85459-0_13

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 ().