Capital Structure Puzzle PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Capital Structure Puzzle PDF full book. Access full book title Capital Structure Puzzle by Stewart C. Myers. Download full books in PDF and EPUB format.
Author: Stewart C. Myers
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 46
Get Book Here
Book Description
This paper contrasts the "static tradeoff" and "pecking order" theories of capital structure choice by corporations. In the static tradeoff theory, optimal capital structure is reached when the tax advantage to borrowing is balanced, at the margin, by costs of financial distress. In the pecking order theory, firms preferinternal to external funds, and debt to equity if external funds are needed. Thus the debt ratio reflects the cumulative requirement for external financing. Pecking order behavior follows from simple asymmetric information models. The paper closes with a review of empirical evidence relevant to the two theories.
Author: Stewart C. Myers
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 46
Get Book Here
Book Description
This paper contrasts the "static tradeoff" and "pecking order" theories of capital structure choice by corporations. In the static tradeoff theory, optimal capital structure is reached when the tax advantage to borrowing is balanced, at the margin, by costs of financial distress. In the pecking order theory, firms preferinternal to external funds, and debt to equity if external funds are needed. Thus the debt ratio reflects the cumulative requirement for external financing. Pecking order behavior follows from simple asymmetric information models. The paper closes with a review of empirical evidence relevant to the two theories.
Author: Andreas G. Merikas
Publisher:
ISBN:
Category : Capital
Languages : en
Pages : 312
Get Book Here
Book Description
Author: H. Kent Baker
Publisher: John Wiley & Sons
ISBN: 0470569522
Category : Business & Economics
Languages : en
Pages : 516
Get Book Here
Book Description
A comprehensive guide to making better capital structure and corporate financing decisions in today's dynamic business environment Given the dramatic changes that have recently occurred in the economy, the topic of capital structure and corporate financing decisions is critically important. The fact is that firms need to constantly revisit their portfolio of debt, equity, and hybrid securities to finance assets, operations, and future growth. Capital Structure and Corporate Financing Decisions provides an in-depth examination of critical capital structure topics, including discussions of basic capital structure components, key theories and practices, and practical application in an increasingly complex corporate world. Throughout, the book emphasizes how a sound capital structure simultaneously minimizes the firm's cost of capital and maximizes the value to shareholders. Offers a strategic focus that allows you to understand how financing decisions relates to a firm's overall corporate policy Consists of contributed chapters from both academics and experienced professionals, offering a variety of perspectives and a rich interplay of ideas Contains information from survey research describing actual financial practices of firms This valuable resource takes a practical approach to capital structure by discussing why various theories make sense and how firms use them to solve problems and create wealth. In the wake of the recent financial crisis, the insights found here are essential to excelling in today's volatile business environment.
Author: Mohamed Lahiani
Publisher:
ISBN:
Category : Capital
Languages : en
Pages : 190
Get Book Here
Book Description
Corporate finance researchers have long been puzzled by low corporate debt ratios given debt's corporate tax advantage. What makes the capital structure debate especially intriguing is that the different theories represent such different, and in some ways almost diametrically opposed, decision-making processes.
Author: James L. Berens
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Corporate finance researchers have long been puzzled by low corporate debt rations, given debt's corporate tax advantage. This paper recognizes that firm value typically reflects a growing stream of earnings, while current debt reflects a non-growing stream of interest payments. Debt-to-value is therefore a distorted measure of corporate tax shielding. Even with very small debt-related costs, this may explain the observed magnitude and cross-sectional variation of debt ratios. Since this variation may be independent of tax shielding, debt ratios provide an inappropriate framework for empirically examining the tradeoff theory of capital structure.
Author: Christopher Parsons
Publisher: Now Publishers Inc
ISBN: 160198202X
Category : Business & Economics
Languages : en
Pages : 107
Get Book Here
Book Description
Empirical Capital Structure reviews the empirical capital structure literature from both the cross-sectional determinants of capital structure as well as time-series changes.
Author: Narayan Changder
Publisher: CHANGDER OUTLINE
ISBN:
Category : Business & Economics
Languages : en
Pages : 46
Get Book Here
Book Description
Navigate the intricate terrain of corporate finance with "Capital Structure Dynamics." This comprehensive guide offers strategic insights into the art of balancing debt and equity, providing essential knowledge for students and financial professionals alike. Explore optimal capital structures, leverage ratios, and risk management strategies. Download now to deepen your understanding of financial decision-making, enhance company value, and make informed choices in the ever-evolving business landscape. Elevate your financial proficiency with this essential resource. Download your key to mastering capital structure and optimizing financial success today!
Author: Andreas George Merikas
Publisher:
ISBN:
Category : Capital
Languages : en
Pages : 156
Get Book Here
Book Description
Author: Arvin Ghosh
Publisher: Transaction Publishers
ISBN: 1412808936
Category : Business & Economics
Languages : en
Pages : 143
Get Book Here
Book Description
Capital structure theory is one of the most dynamic areas of finance and forms the basis for modern thinking on the capital structure of firms. Much controversy has resulted from comparisons of the theory of capital structure originally developed by Franco Modigliani and Merton Miller to real-world situations. Two competing theories have emerged over the years, the optimal capital structure theory and the pecking order theory. Arvin Ghosh begins with an overview of the controversies regarding capital structure theories, and then statistically tests both the optimal capital structure and pecking order theories. Using the binomial approach he analyzes the determinants of capital structure while discussing the role of market power in determining capital structure decisions. Ghosh probes the questions of new stock offerings and stockholders' returns, and analyzes capital structure and executive compensation. He then looks into debt financing ownership structure, and the controversal relationship between capital structure and firm profitability. Finally, he discusses the latest developments in the field of capital structure. A concise overview of a major issue in business economics and finance, this volume provides a fuller understanding of capital structure influence on the financial performance of firms, and will certainly stimulate further debate. While hundreds of scholarly articles have been written on the subject this is the first book to test competing theories against measurements of firms' performance and their underlying capital structure.
Author: Hak Choi
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Get Book Here
Book Description
This paper clarifies the capital structure puzzle. The traditional theories have forgotten to monitor the money raised from equity issuing. When included, the contribution of this source of finance becomes apparent. Though its productivity is the same as any money, including debt, its cost is much lower. The optimal debt/equity ratio is thus found to be the reciprocal of their prices.
