New framework for corporate debt policy.

Few, if any, articles on finance that have appeared in HBR have enjoyed the influence of the t962 article reprinted here as a ‘Classic.’ Gordon Donaldson's analysis of how many companies haphazardly established their debt capacity, and his careful explanation of what he considered a better way, seemed to strike a chord among corporate administrative and financial officers. But the article was more than a timely essay; it remains a valuable guide, a stimulus to rational thought about building a debt policy from the ground up. Indeed, 16 years later ‘New Framework for Corporate Debt Policy’ still sells steadily in reprints. Judging from the retrospective commentary prepared by the author for this republication, he would not change much if he were writing the article today. [ABSTRACT FROM AUTHOR]

Copyright © Harvard Business Publishing. All Rights Reserved. This content is intended for individual research use only, subject to the following: Unless permission is expressly granted in a separate license, this content may NOT be used for classroom or teaching use, which includes teaching materials, electronic reserves, course packs or persistent linking from syllabi. Please consult your institution's librarian about the nature of relevant licenses held by your institution and the restrictions that may or may not apply.Unless permission is expressly granted in a separate license, this content may NOT be used in corporate training and/or as corporate learning materials. For corporate users, please consult the specific terms of your company's license(s) for complete information and restrictions. For more information and teaching resources from Harvard Business Publishing including Harvard Business School Cases, eLearning products, and business simulations please visit hbsp.harvard.edu. (Copyright applies to all Abstracts.)