Editing Shareholder value (section)

====Debt financing====
{{Main|Debt financing}}
Debt financing, or the purposeful acquisition of debt, causes the debt to equity ratio of the company to rise. Without shareholder value, this would normally be considered negative because it means that the company is not making money. In the shareholder value system, high debt to equity ratios are considered an indicator that the company has confidence to make money in the future.<ref>{{cite journal|last=Lazonick|first=William|author2=Mary O'Sullivan|title=Maximizing shareholder value: a new ideology for corporate governance|journal=Economy and Society|date=2 December 2010|volume=29|issue=1|pages=13–35|doi=10.1080/030851400360541|s2cid=218508129}}</ref> Therefore, debt is not something to avoid but rather something to embrace and having debt will actually gain the company investors. Taking on large risk attracts investors and increases potential value gain, but puts the company in danger of bankruptcy and collapse.