Minimal dependence on debt Thorbjoern Mann
While companies need short term access to credit to cover investment and operational needs, too much debt will distort the performance picture, burden the company with interest payments. Especially the debt imposed on companies by buyout transactionsare detrimental.
Some related topics that might be of interest:
- Discount rate, where things in future are considered less valuable than events currently. Some people, such as Daly, say that it would be morally and environmentally correct to not discount the future as much as we do.
-- Regulations regarding buyout, saddling a company with the debt incurred by the buyer to finance the takeover, should be changed (realizing this does not refer to the firm's structure but to regulatory context conditions -- unless company structure can be designed to itself prevent or discourage buyout...)