January 2017 Data Update 8: The Dark and Light Sides of Debt
aswathdamodaran.substack.com
There is no aspect of corporate finance where morality plays a bigger role than the decision of how much to borrow. That should come as no surprise. For generations, almost every religion has inveighed against debt, with some seeking outright bans and others strongly urging followers to "neither a borrower nor a lender be", and perhaps with good reason. History is filled with instances of human beings, caught up in the mood of the moment, borrowing money and then finding themselves destitute in bad times. That said, there is no denying that the decision of whether to borrow money, and if so how much to borrow, has become a critical part of running a business.
January 2017 Data Update 8: The Dark and Light Sides of Debt
January 2017 Data Update 8: The Dark and…
January 2017 Data Update 8: The Dark and Light Sides of Debt
There is no aspect of corporate finance where morality plays a bigger role than the decision of how much to borrow. That should come as no surprise. For generations, almost every religion has inveighed against debt, with some seeking outright bans and others strongly urging followers to "neither a borrower nor a lender be", and perhaps with good reason. History is filled with instances of human beings, caught up in the mood of the moment, borrowing money and then finding themselves destitute in bad times. That said, there is no denying that the decision of whether to borrow money, and if so how much to borrow, has become a critical part of running a business.