Download or read book Two Essays on Capital Structure written by Ayla Kayhan and published by . This book was released on 2004 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Two Essays in Empirical Capital Structure written by Carlos Alberto Molina and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Capital Structure written by Jing Xue and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of two essays. The first essay provides a theoretical explanation for why leverage is negatively correlated with profitability. It also examines why capital structure varies across industries as well as within one industry. The second essay examines how capital structure can be employed in mitigating the agency problems and improving the efficiency of compensation scheme to the management.

Download or read book Two Essays on Capital Structure written by Daniel Lawson and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Upon initially reporting negative equity, these firms remain active in COMPUSTAT, on average, for an additional 6.18 years. I examine the taxonomy of these potentially insolvent firms and determine the transition probabilities. My study also includes an examination into the steady increase in percentage of firms reporting negative equity over the time period, with less than 1% of the firms reporting negative equity in 1970 to more than 10% in 2007, yet the longevity of these firms does not diminish. I analyze sources of funds for these firms to show that distressed firms have a remarkable ability to generate substantial funds through short-term and long-term debt and through the issuance of stock, thereby postponing or avoiding costly bankruptcy.

Download or read book Two Essays in Applied Economics and Finance written by Bennett W. Golub and published by . This book was released on 1984 with total page 568 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Two Essays of the Effects of Corporate Governance on Capital Structure Dynamics written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Capital Structure and Trade Financing written by Klaus Hammes and published by Department of Economics School of Economics and Commercial Law Go. This book was released on 2003 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Corporate Risk and Capital Structure written by Babak Lotfaliei and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "This dissertation consists of two essays and five chapters. The first essay in chapter two addresses the zero-leverage puzzle, the observation that many firms do not issue debt and thus seem to forego sizable debt benefits. Based on the trade-off theory, a firm financed with debt saves on taxes, while it faces the debt costs associated with financial distress. Firms issue debt and net a positive gain by trading off costs and benefits. However, zero-levered firms seemingly ignore significant tax advantages associated with debt financing. I propose that this behavior is due to the value in waiting to issue debt and postponing debt costs. By considering the real option of issuing debt, small and risky firms have incentives to postpone debt issuance, even when standard trade-off theory predicts that these firms should have leverage. Thus, the value of debt-free firms should include an option component whose value is derived from future debt issuance benefits. I present a simple model for a firm's optimal issuance with optimal leverage and default, and find the factors that increase the propensity to remain zero-levered: high volatility, high debt costs, low tax levels, low payout rate, and small size. I verify the factors empirically on a sample of zero-leverage (ZL) firms by estimating a survival and a choice model and an out-of-sample test on levered firms.The second essay in chapter three provides an explanation for the underleverage puzzle by relating it to volatility risk premia. As a stylized fact, many firms have lower leverage compared to what the trade-off theory predicts, in particular based on their low asset volatility. In addition, the underleverage is the highest for Investment-Grade (IG) firms. Without volatility risk, the essay empirically documents that underleverage across firms increases with volatility risk premium at the asset level. The result is the motive to present two models with stochastic asset volatility that feature optimal capital structure. With priced asset volatility risk, the models in standard trade-off settings show that a higher premium implies lower leverage; the assets' Variance Risk Premia (VRP) reduce tax benefits and increase debt costs. Empirically, the models' calibration leaves no significant underleverage patterns in the cross-section of the firms. Thus, seemingly underleveraged firms have high asset volatility risk premia relative to their low physical asset volatility, which explains their apparent underleverage. In particular, the largest proportion of the volatility is systematic for IG firms; and, consequently, VRP are the highest. This in turn leads to a lower implied leverage, close to the IG firms' empirical leverage.Chapter four reviews the literature related to the earlier chapters. Chapter five concludes with the main findings and provides venues for the future research." --

Download or read book Two Essays on Empirical Tests Related to Capital Structure Theory written by Ning Ma and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses capital structure theories, with special attention to partial-adjustment model. Strategic waiting theory of IPO firms and its relation to market timing theory are also discussed. Two empirical tests related to capital structure theory are included. First one is a test on the relation between a firm's strategic waiting behavior in IPO market and its stock return. Second one is on the relation of a firm's strategic waiting behavior in IPO market and its subsequent capital structure decision.

Download or read book Essays on Capital Structure written by Andrew Hardy Roper and published by . This book was released on 2002 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Capital Structure Decisions written by Philipp Immenkötter and published by . This book was released on 2014 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays of Capital Structure Risk Management and Options on Index Futures written by Tzu Tai and published by . This book was released on 2014 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation includes the following three essays involved in the joint determination of capital structure and stock rate of return, fair deposit insurance premium estimation, and the prediction of implied volatility of options on index futures. The first essay identifies the joint determinants of capital structure and stock returns by using three alternative approaches to deal with the measurement error-in-variable problem. The main contribution of this essay is the comprehensive confirmation on theories in corporate finance. The empirical results from the structural equation modeling (SEM) with confirmatory factor analysis (CFA) show that stock returns, asset structure, growth, industry classification, uniqueness, volatility and financial rating, profitability, government financial policy, and managerial entrenchment are main factors of capital structure in either market- or book- value basis. Finally, the results in robustness test by using the Multiple Indicators and Multiple Causes (MIMIC) model and the two-stage, least square (2SLS) method show the necessity and importance of latent attributes to describe the trade-off between the financial distress and agency costs in capital structure choice. In the second essay, we use the structural model in terms of the Stair Tree model and barrier option to evaluate the fair deposit insurance premium in accordance with the constraints of the deposit insurance contracts and the consideration of bankruptcy costs. The simulation results suggest that insurers should adopt a forbearance policy instead of a strict policy for closure regulation to avoid losses from bankruptcy costs. An appropriate deposit insurance premium can alleviate potential moral hazard problems caused by a forbearance policy. In the third essay, we use two alternative approaches, time-series and cross-sectional analysis and constant elasticity of variance (CEV) model, to give different perspective of forecasting implied volatility. We use call options on the S & P 500 index futures expired within 2010 to 2013 to do the empirical work. The abnormal returns in our trading strategy indicate the market of options on index futures may be inefficient. The CEV model performs better than Black model because it can generalize implied volatility surface as a function of asset price.

Download or read book Essays on Capital Structure written by Nirvalur R. Vijayaraghavan and published by . This book was released on 1986 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Two Essays on how Do Investors Perceive the Optimal Capital Structure and an Essay on Mutual Fund Volatility Decomposition and Manager Skill written by Nima Vafai and published by . This book was released on 2022 with total page 111 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation explores the rational investment hypothesis proposed by classical theories at the stock and portfolio (mutual fund) level. My first two essays focus on the risk associated with the composition of debt and equity at the firm level. The third essay studies the total risk at the portfolio level in the mutual fund setting.In the first essay, we examine the association between deviations from the optimal capital structure and firm-level stock returns by comparing different proxies for optimal capital structure from the literature and constructing improved industry-specific optimal capital structure measures. After comparing the performance of each measure, we use a partial adjustment model to study how firms reduce their gap from optimal leverage. In the second essay, we model firms' deviations from the optimal capital structure as a new risk factor in the cross-section of stock returns. Using Monte-Carlo simulations to conduct bootstrapped mean-variance spanning tests, we examine whether the existing Fama and French factors can explain this potential new risk factor. We also use Text Network Industry Classification (TNIC) to show whether the new risk factor is robust to alternative industry classification. In the third essay, we use a volatility decomposition to identify the underlying sources of differences in the performance of low and high-volatility mutual funds. We then examine whether the difference in performance is fund-specific and due to the manager's skill, or it is a broad characteristic of market volatility. Last, we show how the difference in the performance of low and high volatility mutual funds is related to the existence of a beta anomaly in the mutual fund industry. Furthermore, we examine the idiosyncratic volatility relation with beta and risk-adjusted return (alpha) at the fund level.

Download or read book Essays on Capital Structure written by Paula Castro Castro and published by . This book was released on 2015 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Control and Capital Structure written by Erik Berglöf and published by . This book was released on 1991 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Capital Structure written by Adnan Qasim Aldayel and published by . This book was released on 1994 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: