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