We present an overview of the literature that links capital structure and factor‐product markets. These studies relate some elements of the modern financial theory to the stakeholder theory, industrial organization, and firms' strategic management. Three main points are highlighted. First, the relevant role of non‐financial stakeholders in capital structure design. Second, the interactions between capital structure and market structure. Third, the two‐direction effect between the firm's capital structure and its strategic behavior in product markets. Our study aims to build an index for the existing works to guide researchers for new ideas and possible advances.
Sustainable finance seeks to increase the contribution of finance to sustainable and inclusive growth. The global financial crisis of 2008 provoked the return of inequality in advanced countries to levels typical of a century ago. The aim of this paper is to empirically analyze the relationship between finance and income inequality for a group of nine OECD countries over the pre-crisis and post-crisis periods (2000–2015). The model proposed in this study simultaneously considers two explanatory variables for measuring financial depth (credit provision and capital markets) and a new multidimensional variable to measure the financial system’s resilience (a composite indicator), and conducts panel data analysis. The empirical results confirm that in terms of financial depth, the "too much finance hypothesis" holds. We also find that financial system’s resilience helps alleviate existing income inequality and that income inequality appears higher in liberal market economies than in coordinated economies. These results encourage policymakers to look beyond traditional public redistribution interventions and to pay attention to other financial variables related to the financialization process, the behavior of financial intermediaries, and the specific environment in which they operate.
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