The Research about Effects of Borrowing on the Firm's Profitability
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- earnings per share; capital structure decision; earnings before interest and tax; recapitalization decision; benefit
The decision to finance part of the firm's assets with borrowed funds has important managerial implications. If the firm finds it increasingly difficult to service its debt (paying interest and repaying the borrowed funds) because of excessive borrowing, its management will be under pressure to make decisions that may not be in the best interest of shareholders.
- © 2016, the Authors. Published by Atlantis Press.
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Cite this article
TY - CONF AU - Liyang Jiang PY - 2016/07 DA - 2016/07 TI - The Research about Effects of Borrowing on the Firm's Profitability BT - Proceedings of 2016 2nd International Conference on Humanities and Social Science Research (ICHSSR 2016) PB - Atlantis Press SP - 73 EP - 76 SN - 2352-5398 UR - https://doi.org/10.2991/ichssr-16.2016.18 DO - https://doi.org/10.2991/ichssr-16.2016.18 ID - Jiang2016/07 ER -