This paper presents a survey of studies that emphasize the effects related to financing decisions on the firms' competitive ability. It describes the results of theoretical patterns and an empirical research published during the last two decades and also emphasizes the agenda determined by traditional studies on this subject. Such studies stresses specially the aspects related to the limited liability of the firms' owners, the aspects related to the utilization of the capital structure to stimulate predatory competition and also the incentives to establish agreements keeping limits to the competition, considering the choices related to the capital structure of the firm. Considering that the stylized facts suggest a connection between capital structure and competitive strategies, it becomes an important aspect for finance and industrial organization studies. Besides, the results of theses studies have empirical implications that can give form to public policies regulating competition and stimulating the use of debt as a main financing source.
capital structure; competitive strategy; oligopoly