The interaction between a firm's strategic decisions and its financial policies has become an increasingly frequent topic in the managerial economics literature. We examine here a dimension of that interaction that has not previously been addressed, and suggest a new framework for defining the manner in which choices of strategy and choices of capital structure might be jointly determined, in an environment where upward pressures on factor costs and product prices are the norm.
All Science Journal Classification (ASJC) codes
- Business and International Management
- Strategy and Management
- Management Science and Operations Research
- Management of Technology and Innovation