Essays on Capital Structure Decisions
Author : Philipp Immenkötter
Publisher :
Page : 146 pages
File Size : 48,53 MB
Release : 2014
Category :
ISBN : 9783830079811
Essays on Corporate Capital Structure Decisions
Author : Timo Löyttyniemi
Publisher :
Page : 156 pages
File Size : 16,35 MB
Release : 1991
Category : Corporations
ISBN : 9789517020053
Book Description
The Capital Structure Decision
Author : Harold Bierman Jr.
Publisher : Springer Science & Business Media
Page : 230 pages
File Size : 46,52 MB
Release : 2012-12-06
Category : Business & Economics
ISBN : 1461510376
Book Description
In 1958 an academic paper on corporate finance written by two professors (Merton Miller and Frances Modigliani, who were later awarded the Nobel prize for their research efforts) was published in The American Economic Review. One prime conclusion of their paper was that the exact form of a firm's capital structure did not affect the firm's value. Later papers by the same two authors and by many others modified the assumptions and changed this conclusion. We now think that capital structure decisions do affect a firm's value and corporate managers should understand better the financing alternatives that are available. One of the most important financial decisions is the decision to buy or lease assets. The leasing industry is large and getting larger. Unfortunately, it is very easy for a firm to evaluate incorrectly lease alternatives (see Chapter 12). The capital structure decision is one of the three most important financial decisions that management make (the distribution of earnings and the capital budgeting decisions are the other two contenders). Managers should increase their understanding of capital structure alternatives and remember that choosing the best capital structure is an art and not an exact simple calculation. But applying the art can be improved with understanding.
Essays on Capital Structure and Firm Investment
Author : Yiming Xu
Publisher :
Page : 0 pages
File Size : 31,47 MB
Release : 2019
Category :
ISBN :
Book Description
In this thesis, I study the interactions between firms' capital structure and real decisions. First, I investigate how a firm's financial leverage will impact its investment contingent on whether future growth opportunities are anticipated. Second, I test the under and over investment hypothesis related to debt financing contingent on whether the firm is likely to under or over invest. Last, I investigate how a firm's production technology can impact its production and capital structure decisions. In Chapter 1, I investigate the impact of anticipations of future growth opportunities on leverage-investment interactions. I show that when growth opportunities are unanticipated, the negative impact of leverage on investment is up to two times larger than when they are anticipated. The presence of institutional stockholdings significantly reduces the under investment problem. An instrumental variable analysis reveals that the leverage-investment relationship is weak when the problem of endogeneity is controlled. The results provide strong evidence that Canadian firms take ex ante leverage adjustments to mitigate the debt overhang problem. Chapter 2 studies the extent to which leverage-investment interactions depend on the level of initial investment as well future investment opportunities in US firms. I find a strong negative relationship between leverage and investment for firms with low levels of (initial) investment and high investment opportunities. I also find a positive relationship between leverage and investment for firms with high levels of (initial) investment and low growth opportunities. I distinguish between Tobin's Average Q and Marginal Q as proxies for firms' investment opportunities and propose a novel method to estimate Marginal Q. Chapter 3 is a joint work with Varouj Aivazian. In this chapter, we investigate the interactions between the flexibility of a firm's production and its financial structure. This chapter shows that production flexibility is an important factor explaining the cross sectional variations in financial leverage among U.S. firms. Alternative empirical measures of production flexibility are all shown to be positively associated with financial leverage. This chapter also develops a novel measure of inter-temporal production flexibility and identifies important linkages between production and financing decisions.
Capital Structure Decisions
Author : Yamini Agarwal
Publisher : John Wiley & Sons
Page : 208 pages
File Size : 43,85 MB
Release : 2013-03-29
Category : Business & Economics
ISBN : 111820316X
Book Description
Inside the risk management and corporate governance issues behind capital structure decisions Practical ways of determining capital structures have always been mysterious and riddled with risks and uncertainties. Dynamic paradigm shifts and the multi-dimensional operations of firms further complicate the situation. Financial leaders are under constant pressure to outdo their competitors, but how to do so is not always clear. Capital Structure Decisions offers an introduction to corporate finance, and provides valuable insights into the decision-making processes that face the CEOs and CFOs of organizations in dynamic multi-objective environments. Exploring the various models and techniques used to understand the capital structure of an organization, as well as the products and means available for financing these structures, the book covers how to develop a goal programming model to enable organization leaders to make better capital structure decisions. Incorporating international case studies to explain various financial models and to illustrate ways that capital structure choices determine their success, Capital Structure Decisions looks at existing models and the development of a new goal-programming model for capital structures that is capable of handling multiple objectives, with an emphasis throughout on mitigating risk. Helps financial leaders understand corporate finance and the decision-making processes involved in understanding and developing capital structure Includes case studies from around the world that explain key financial models Emphasizes ways to minimize risk when it comes to working with capital structures There are a number of criteria that financial leaders need to consider before making any major capital investment decision. Capital Structure Decisions analyzes the various risk management and corporate governance issues to be considered by any diligent CEO/CFO before approving a project.
Capital Structure and Corporate Financing Decisions
Author : H. Kent Baker
Publisher : John Wiley & Sons
Page : 504 pages
File Size : 34,57 MB
Release : 2011-03-31
Category : Business & Economics
ISBN : 1118022947
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.
Essays on Capital Structure and Trade Financing
Author : Klaus Hammes
Publisher : Department of Economics School of Economics and Commercial Law Go
Page : 188 pages
File Size : 42,56 MB
Release : 2003
Category : Capital investments
ISBN :
Book Description
Two Essays in Applied Economics and Finance
Author : Bennett W. Golub
Publisher :
Page : 568 pages
File Size : 38,80 MB
Release : 1984
Category :
ISBN :
Book Description
Essays on Capital Structure
Author : Özde Öztekin
Publisher :
Page : pages
File Size : 39,18 MB
Release : 2009
Category :
ISBN :
Book Description
ABSTRACT: My dissertation examines international differences in the determinants of capital structure and firms' adjustment to optimal capital structure across 37 countries over the period from 1991 to 2006. I first explore which leverage factors are consistently important for the capital structure decisions of firms around the world. The results highlight past leverage as the most important factor in all sample countries. Next, I examine the adjustment to optimal leverage. A firm's ability to adjust its leverage is greatly influenced by economic, legal, and political institutions, corporate governance, tax systems, and the structure of credit and securities markets of the countries. In institutional environments with higher adjustment costs, due to the severity of external financing costs and regulatory cash constraints, the adjustment is significantly slower; in settings with greater adjustment benefits as implied by higher tax shields and the ability to prevent distress and deviation costs, the adjustment is considerably faster. Collectively, my research indicates that a country's legal and institutional heritage is a significant factor in determining a firm's choice of capital structure and the adjustment process to optimal leverage around the world.
The Capital Structure Decision
Author : Harold Bierman Jr
Publisher :
Page : 236 pages
File Size : 39,97 MB
Release : 2002-11-30
Category :
ISBN : 9781461510383
Book Description
In 1958 an academic paper on corporate finance written by two professors (Merton Miller and Frances Modigliani, who were later awarded the Nobel prize for their research efforts) was published in The American Economic Review. One prime conclusion of their paper was that the exact form of a firm's capital structure did not affect the firm's value. Later papers by the same two authors and by many others modified the assumptions and changed this conclusion. We now think that capital structure decisions do affect a firm's value and corporate managers should understand better the financing alternatives that are available. One of the most important financial decisions is the decision to buy or lease assets. The leasing industry is large and getting larger. Unfortunately, it is very easy for a firm to evaluate incorrectly lease alternatives (see Chapter 12). The capital structure decision is one of the three most important financial decisions that management make (the distribution of earnings and the capital budgeting decisions are the other two contenders). Managers should increase their understanding of capital structure alternatives and remember that choosing the best capital structure is an art and not an exact simple calculation. But applying the art can be improved with understanding.
