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.  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.
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In addition to direct intervention, government may establish organisations to act as regulators and watchdogs , such as the Office of Fair Trading , which tries to ensure that firms compete fairly, and the Competition Commission , which investigates abuse of market dominance by firms with monopoly power. The Advertising Standards Authority (ASA) also promotes ‘ethical’ advertising and regulates the advertising industry in an attempt to improve the accuracy of information available to consumers. The ASA is a self-regulatory body established in 1962, and insists that adverts should be ‘..honest, decent and truthful..’ ‘.. and in line with the principles of fair competition generally accepted in business..’.