Article Review - Corporate Finance

This week deals with capital structure, limits of debts and effect on firm value. To understand the theory, evidence of problems and how to deal with the problem, you will review this article and respond to the questions:

Cole, C., & Yan, Y., & Hemley, C. (2015). Does capital structure impact firm performance: An empirical study of three U.S. sectors. Journal of Accounting and Finance, 15(6), 57 – 65

•  The article is attached above.

Address the following questions as you read the article:

1. What corporate finance problem is the article addressing?
2. What method of study (qualitative, quantitative, or mixed study) does the authors use to address the problem?
3. What are the significant findings or ideas of the study?
4. What is the conclusion of the study? Do the findings support the conclusion?
5. What are the strengths and limitations of the study?
6. Make a proposal for future research on the topic that needs to be investigated.