Investment, Capital Structure and Complementarities Between Debt and New Equity PDF Download
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Author: Rune Stenbacka
Publisher:
ISBN: 9789515555762
Category : Corporate debt
Languages : en
Pages : 29
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Book Description
Author: Rune Stenbacka
Publisher:
ISBN: 9789515555762
Category : Corporate debt
Languages : en
Pages : 29
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Book Description
Author: Ronald W. Masulis
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 168
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Book Description
Author: Efraim Sadka
Publisher: International Monetary Fund
ISBN: 1451857640
Category : Business & Economics
Languages : en
Pages : 22
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Book Description
This paper distinguishes between debt and equity flows in the presence of information asymmetry between the firm’s “insiders” and “outsiders” in a small open economy. It shows the inadequacy of capital investment because its scope is too narrow and the investment each firm makes is too little. An unconventional policy tool is proposed to correct the market failure: lump-sum subsidies to firms that choose to equity-finance their investments.
Author: Klaus Hammes
Publisher: Department of Economics School of Economics and Commercial Law Go
ISBN:
Category : Capital investments
Languages : en
Pages : 188
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Book Description
Author: Angel F. Khomar
Publisher:
ISBN:
Category :
Languages : en
Pages : 7
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Book Description
Debt and equity represent somewhat different sources of funds for a company, and the Chief Financial Officer (CFO) would like to know the best combination of debt and equity funding to use. That is, what should be the company's capital structure. Should the apparent differences between debt and equity make any difference? Which combination of debt and equity might have the lowest cost? What influence do taxes and the costs of raising new debt and equity capital have on the capital structure decision? How can one quantify the effects of bankruptcy risk? Put another way, what combination of debt and equity financing would help to maximize the market value of the firm? These issues represent the capital structure puzzle and have vexed finance thinkers for decades. Fortunately, evolving theory is beginning to show how a company can find its optimum capital structure.
Author: C. Miya
Publisher:
ISBN: 9785261608349
Category : Business & Economics
Languages : en
Pages : 0
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Book Description
Capital structure, sometimes known as Financial Plan is all about achieving the correct proportion between debt and equity. As it is one of the most controversial issues in finance, there has been much debate on it. The capital required for private investment while often scarce, can be had from variety of sources. Firms have three main sources of capital, internally generated funds, bank loans and finance raised in capital markets. The resulting mix of debt and equity determines a firm's capital structure. The importance of debt-equity choice depends on how capital structure decisions actually influence the value of the firm and the riskiness of its earnings.
Author: Paul Howard Richards
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
It is shown i) that the under-investment problem is caused by the debt-equity mix of the financing rather than the investment itself and that a transfer of value (from shareholders to debt-holders) can be reversed by a post-investment adjustment in capital structure that restores the pre-investment gearing ratio. This simple, low-cost solution is preferable to reducing debt maturity (as in Myers (1977)) or gearing; ii) that transfers in value from debt-holders to shareholders to promote over-investment are not sustainable since investors will seek to avoid being disadvantaged by demanding higher returns, greater restrictions on the company or both; and that information asymmetry that restricts the issue of new shares can be managed by using several alternatives such as bridge financing in ways that remove the rationale for the pecking order theory; and iii) that managers have incentives to engage in empire building which is facilitated by a capital structure that reflects the degree of concentration among the other companies in the sector: faced with a low (high) degree of concentration, companies have lower (higher) gearing. The implications of these outcomes are empirically investigated using an extensive sample and robust estimating procedures providing strong support for the hypotheses tested.
Author: Christopher Parsons
Publisher: Now Publishers Inc
ISBN: 160198202X
Category : Business & Economics
Languages : en
Pages : 107
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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: H. Kent Baker
Publisher: John Wiley & Sons
ISBN: 1118022947
Category : Business & Economics
Languages : en
Pages : 504
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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: National Bureau of Economic Research
Publisher:
ISBN:
Category :
Languages : en
Pages : 115
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Book Description
