Download or read book On the Evolution of Corporate Capital Structures written by Daniel G. Arce and published by . This book was released on 2015 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most, if not all, published theoretical models of capital structure decisions assume that all firms follow the same capital structure decision process or strategy. We argue that such an assumption is inconsistent with extant evidence. Instead we argue that there is heterogeneity in the decision processes and strategies that managers follow, and that they make adaptive adjustments to their strategies that are conditioned on the choices of other firms as well as their prior choices. Using data on U.S. corporate capital structures between 1965 through 2003, we find evidence that is consistent with our proposed alternative. Our characterization of the evolution of corporate capital structures emphasizes the roles of a firm's initial capital structure and its competitors' capital structure strategies.
Download or read book Corporate Capital Structures in the United States written by Benjamin M. Friedman and published by University of Chicago Press. This book was released on 2009-05-15 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: The research reported in this volume represents the second stage of a wide-ranging National Bureau of Economic Research effort to investigate "The Changing Role of Debt and Equity in Financing U.S. Capital Formation." The first group of studies sponsored under this project, which have been published individually and summarized in a 1982 volume bearing the same title (Friedman 1982), addressed several key issues relevant to corporate sector behavior along with such other aspects of the evolving financial underpinnings of U.S. capital formation as household saving incentives, international capital flows, and government debt management. In the project's second series of studies, presented at the National Bureau of Economic Research conference in January 1983 and published here for the first time along with commentaries from that conference, the central focus is the financial side of capital formation undertaken by the U.S. corporate business sector. At the same time, because corporations' securities must be held, a parallel focus is on the behavior of the markets that price these claims.
Download or read book Back to the Beginning written by Michael L. Lemmon and published by . This book was released on 2011 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the evolution of corporate capital structures and find that little of the variation in leverage is captured by previously identified determinants, such as size, market-to-book, profitability, industry, etc. Instead, the majority of variation in leverage ratios is driven by an unobserved time-invariant effect that generates surprisingly stable capital structures: High (low) levered firms tend to remain as such for over two decades. Additionally, this feature of leverage is robust to firm exit, is present prior to the IPO, and is largely unaffected by the process of going public, suggesting that variation in capital structures is primarily explained by factors that remain relatively stable for long periods of time.
Download or read book Empirical Capital Structure written by Christopher Parsons and published by Now Publishers Inc. This book was released on 2009 with total page 107 pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical Capital Structure reviews the empirical capital structure literature from both the cross-sectional determinants of capital structure as well as time-series changes.
Download or read book Capital Structure written by Ahmed Riahi-Belkaoui and published by Praeger. This book was released on 1999-02-28 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: This text uses theoretical and contingency approaches to examine the question of whether capital structure can be determined. Using a bond rating model it looks at the evaluation of capital structure, the resolution of issues pertaining to equity and liabilities, and their contribution to reports
Download or read book Capital Structure and Corporate Governance written by Lorenzo Sasso and published by Kluwer Law International B.V.. This book was released on 2013-08-01 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite a clear distinction in law between equity and debt, the results of such a categorization can be misleading. The growth of financial innovation in recent decades necessitates the allocation of control and cash-flow rights in a way that diverges from the classic understanding. Some of the financial instruments issued by companies, so-called hybrid instruments, fall into a grey area between debt and equity, forcing regulators to look beyond the legal form of an instrument to its practical substance. This innovative study, by emphasizing the agency relations and the property law claims embedded in the use of such unconventional instruments, analyses and discusses the governance regulation of hybrids in a way that is primarily functional, departing from more common approaches that focus on tax advantages and internal corporate control. The author assesses the role of hybrid instruments in the modern company, unveiling the costs and benefits of issuing these securities, recognizing and categorizing the different problem fields in which hybrids play an important role, and identifying legal and contracting solutions to governance and finance problems. The full-scale analysis compares the U.K. law dealing with hybrid instruments with the corresponding law of the most relevant U.S. jurisdictions in relation to company law. The following issues, among many others, are raised: decisions under uncertainty when the risks of opportunism of the parties is very high; contract incompleteness and ex post conflicts; protection of convertible bondholders in mergers and acquisitions and in assets disposal; use of convertible bonds to reorganise and restructure a firm; timing of the conversion and the issuer’s call option; majority-minority conflict in venture capital financing; duty of loyalty; fiduciary duties to preference shareholders; and financial contract design for controlling the board’s power in exit events. Throughout, the analysis includes discussion, comparison, and evaluation of statutory provisions, existing legal standards, and strategies for protection. It is unlikely that a more thorough or informative account exists of the complex regulatory problems created by hybrid financial instruments and of the different ways in which regulatory regimes have responded to the problems they raise. Because business parties in these jurisdictions have a lot of scope and a strong incentive to contract for their rights, this book will also be of uncommon practical value to corporate counsel and financial regulators as well as to interested academics.
Download or read book Corporate Capital Structures and Financing Patterns 1977 1980 written by Vincent G. Massaro and published by . This book was released on 1977 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Three Essays in Corporate Finance written by Yangyang Chen and published by . This book was released on 2010 with total page 143 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Review of Capital Structure Theories written by Konstantinos Seferiadis and published by . This book was released on 2016 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The "average" firm in the market of United Kingdom has changed its leverage ratio dramatically in the last three decades, following some patterns which apparently cannot be explained by applying simplistic methods. In this paper we try to shed some light in the main stream of the Capital Structure Theories and its critical determinants that influence the evolution in the period of our study. Using the equity decisions of an initial dataset of 3489 firms in UK, we try to reply in three main issues. First, using descriptive statistics, we try to consider how corporate capital structures have evolved during the last three decades in UK. Then, we investigate if existing empirical models explain the changes in the issuing of debt and equity. And last, if these models cannot explain the changes, we examine the nature of forces that are behind variation in financial policy. In our analysis, with a view to find the determinant forces behind, we examine a wide set of linear regressions, concluding to a model comprising of the most prominent factors that affect capital structure changes. Our regression framework is an improvement that can implement the foundation for much future work.
Download or read book A History of Corporate Finance written by Jonathan Barron Baskin and published by Cambridge University Press. This book was released on 1999-12-28 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt: An overview of the role of institutions and organisations in the development of corporate finance.
Download or read book Corporate Capital Structure in Europe written by Julia Koralun-Bereźnicka and published by Taylor & Francis. This book was released on 2024-08-08 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers a comprehensive examination of the factors affecting corporate capital structures across 12 European Union countries, focusing on the influence of country-specific, industry-specific and firm-size-related determinants. It provides a comprehensive review of various interpretations of the capital structure concept and offers a detailed characterisation of commonly employed metrics. Furthermore, it offers an overview of capital structure theories and attempts to classify the factors that shape the financial leverage of enterprises within the framework of these theories. Additionally, it draws readers’ attention to contemporary factors potentially affecting corporate financing decisions, such as Environmental, Social and Governance (ESG) considerations or technological advances and innovations in finance. It combines theoretical insights with empirical research to explore the direct and indirect impacts of these factors on companies’ financing patterns. Targeting a broad readership including students, Ph.D. candidates, researchers, academics and financial practitioners, the book offers a rich understanding of capital structure optimisation and its significance for enhancing company value. Through its coverage of various capital structure theories, determinants and the role of external and internal factors in capital structure decisions, the book is an essential resource for those interested in the complex nature of these influences within the European landscape. With the exception of Chapter 2, no part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Chapter 2 of this book is freely available as a downloadable Open Access PDF at http://www.taylorfrancis.com under a Creative Commons Attribution-Non Commercial-No Derivatives (CC-BY-NC-ND) 4.0 license. Any third party material in this book is not included in the OA Creative Commons license, unless indicated otherwise in a credit line to the material. Please direct any permissions enquiries to the original rightsholder.
Download or read book Dodging Bullets written by Robert N. McCauley and published by Mit Press. This book was released on 1999 with total page 415 pages. Available in PDF, EPUB and Kindle. Book excerpt: An entertaining summary of the broad reshaping of U.S. corporate finance in the lastdecade and a half.
Download or read book Corporate Capital Structures in the United States written by Benjamin M. Friedman and published by . This book was released on 2009 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Evolution of Capital Structure and Operating Performance After Leveraged Buyouts written by Jonathan B. Cohn and published by . This book was released on 2017 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study uses corporate tax return data to examine the evolution of firms' financial structure and performance after leveraged buyouts (LBOs) for a comprehensive sample of 317 LBOs taking place between 1995 and 2007. We find little evidence of operating improvements subsequent to an LBO, although consistent with prior studies, we do observe operating improvements in the set of LBO firms that have public financial statements. We also find that firms do not reduce leverage after LBOs, even if they generate excess cash flow. Our results suggest that effecting a sustained change in capital structure is a conscious objective of the LBO structure.
Download or read book Capital Structure and Firm Performance written by Arvin Ghosh and published by Routledge. This book was released on 2017-07-05 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book The Capital Structure Paradigm written by Zane Swanson and published by Praeger. This book was released on 2003-11-30 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Beginning with a simple model of the debt/equity impact upon firm value and progressively adding complexity to this model, this book seeks to answer the question, What is the frontier of knowledge with respect to debt/equity alternatives, and could a major paradigm shift affect debt/equity choices? With a view toward providing the reader with a framework for examining debt/equity decisions, this book begins with a simple model of the debt/equity impact upon firm value. Utilizing the paradigm development of capital structure theory to identify the current research frontier of the factors affecting the firm debt/equity position, the authors also extrapolate from the current frontier to outline future opportunities for research and improvements in capital structure analysis. Each chapter begins with a discussion of a central tenet, moves on to a discussion of the theoretical research and empirical evidence pertaining to the tenet, and concludes with a summary of the implications of the paradigm shift for current and future research and practice. A chapter at the end of the book provides an analysis of some unanswered questions in the current frontier of knowledge that may be exploited for further research. One is the strength of signaling of capital structure changes on firm value. A second is a lack of specification for the set of capital structure simultaneous equations. A third emerging issue is the definition of the capital structure within behavioral finance thinking.
Download or read book Evolution of Capital Structure Choices for Effective Economic Gain written by Murunga Anthony Ekisa Amoo and published by LAP Lambert Academic Publishing. This book was released on 2012-08 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study gives an in depth examination of determinants of capital structure choices. The study is grounded on pecking order and trade off theories as a basis for explanation of capital structure choices. The statement of the problem for this study is to investigate the determinants of capital structure choices and their influence in allocation of securities in the international capital market. The objective of the study is to assess the effect of capital structure choices in allocation of financial securities in the international market. The methodology employed in this area of study is correlation and regression analysis. The data source and sample source for the study is quoted firms, large unquoted firms and small - medium enterprises. All firms that have been listed on the Kenyan stock exchange during the six - year period, 2007 - 2011, were sampled. Twenty - two firms qualified to be included in the sample. Small medium enterprise (SMEs) was found to have the highest fixed assets. Quoted firms recorded the highest dividend payout ratio followed by unquoted firms.
