The challenges of doing business in an increasingly unpredictable environment are driving the need for more flexible balance sheet management to withstand the disastrous liquidity effects brought on by events like the COVID-19 pandemic.
Our latest thought-leadership article contextualises this need within the concept of the flow of capital throughout the firm, explains some of the most widely employed capital structure theories in South Africa and describes De Angelo and De Angelo’s Financial Flexibility Theory of Capital Structure, which many proclaim to be the solution to these challenges.