New meaningful effects in modern capital structure theory

Peter Brusov*, Tatiana Filatova, Natali Orekhova, Veniamin Kulik, Irwin Weil

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Scopus citations


Paper is devoted to describe the new meaningful effects in capital structure theory, discovered within modern theory of capital cost and capital structure, created by Brusov, Filatova and Orekhova (BFO theory). These qualitatively new effects are present in general version of BFO theory and absent in its perpetuity limit (Modigliani - Miller theory). BFO theory has changed some main existing principles of financial management. Discovered effects modify our understanding of financial management and dictate some unusual managerial decisions.

Original languageEnglish (US)
Pages (from-to)104-122
Number of pages19
JournalJournal of Reviews on Global Economics
StatePublished - 2018


  • Brusov-Filatova-Orekhova theory
  • Modigliani-Miller theory
  • New effects in corporate finance
  • Ratings
  • Trade offtheory

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)


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