rtation assets, limited flexibility parison with the non-asset-based clusters. 3.2 Capital structure of LSPs РThe capital structure reveals how assets are financed, by debt or equity ([39] Modigliani and Miller, 1958). The debt-to-equity ratio is the major indicator for financial risk assessment ([7] Bhandari, 1988). As debtors have to guarantee payback, debt capital is relatively pared to equity, but associated with higher risk, because illiquidity may lead to foreclosure. Higher costs of equity can be ascribed to payments to stockholders in the form of dividends ([59] Speh and Novack, 1995). "The ratio of debt to equity will influence the return on equity (ROE) and will also have implications for cash flow in terms of interest payments and debt repayment" ([12] Christopher, 2005, p. 87).
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