Download or read book Capital Structure Change and Decreases in Stockholders Wealth written by Wayne H. Mikkelson and published by . This book was released on 1985 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper is a cross-sectional analysis of the relationship between common stock price reactions to announcements of convertible security calls and variables that represent possible determinants of changes in common stockholders' wealth. The variables are measures of the following effects of convertible security calls: (1) the change in interest expense tax shields, (2) the potential redistribution of wealth from common stockholders to preferred stockholders and debt holders, (3) the decrease in the value of conversion privileges heldby convertible security holders, (4) the relative increase in shares outstanding and (5) the change in earnings per share. A significant relationshipis found only between the measure of the reduction in interest expense tax shields and the stock price response to call announcements.The apparent corporate tax effect is consistent with some combination of effects due to (1) a reduction in interest expense tax shields and (2) unfavorable information about the calling firm's value of earnings prospects that is conveyed by a call of convertible securities.The evidence is consistent with theories of capital structure that imply optimal financial leverage depends on earnings prospects and with theories that imply reductions in leverage convey unfavorable information about firm value
Download or read book CAPITAL STRUCTURES CHANGE AND DECREASES IN STOCKHOLDERS WEALTH A CROSS SECTIONAL STUDY OF CONVERTIBLE SECURITY CALLS written by Wayne H. MIKKELSON and published by . This book was released on 1983 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
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 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 Convertible Bond Markets written by George A Philips and published by Springer. This book was released on 1997-05-07 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: The convertible bond market has recently gained increasing significance on a global basis with particularly notable growth among very fast growing companies hungry for capital. Philips' Convertible Bond Markets is a comprehensive assessment of this market place, illustrating clearly how investors of all risk persuasions may best utilise the instrument. It will be of great interest both to academics and to professionals including equity fund managers, bond fund managers, 'swaps' teams, stock loan departments, risk controllers, treasurers and proprietary traders.
Download or read book Capital Structure Puzzle written by Stewart C. Myers and published by . This book was released on 1984 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Financing Corporate Capital Formation written by Benjamin M. Friedman and published by University of Chicago Press. This book was released on 2007-12-01 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt: Six leading economists examine the financing of corporate capital formation in the U.S. economy. In clear and nontechnical terms, their papers provide valuable information for economists and nonspecialists interested in such questions as why interest rates are so high, why corporate debt has accelerated in recent years, and how government debt affects private financial markets. Addressing these questions, the contributors focus chiefly on three themes: the actual use of debt and equity financing by corporations in recent years; the factors that drive the financial markets' pricing of debt and equity securities; and the relationship between corporations' real investment decisions and their financial decisions. While some of the papers are primarily expository, others break new ground. Extending his previous work, Robert Taggart finds a closer relationship between corporate and government debt than has been supposed. Zvi Bodie, Alex Kane, and Robert McDonald conclude in their study that the volatility of interest rates under the Volcker regime has led to a rise in real interest rates because of investors' demand for a greater risk premium. All of the papers present empirical findings in a useful analytical framework. For its new findings and for its expert overview of issues central to an understanding of the U.S. economy, Financing Corporate Capital Formation should be of both historical and practical interest to students of economics and practitioners in the corporate and financial community.
Download or read book Journal of Banking Finance written by and published by . This book was released on 1986 with total page 720 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Journal of Financial Economics written by and published by . This book was released on 1991 with total page 684 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Convertible Securities A Complete Guide to Investment and Corporate Financing Strategies written by Tracy V. Maitland and published by McGraw Hill Professional. This book was released on 2022-04-05 with total page 559 pages. Available in PDF, EPUB and Kindle. Book excerpt: The definitive guide to reduced-risk investing in the $600+ billion global convertible securities market Authored by professionals at Advent Capital Management―one of the world’s leaders on convertible securities―Convertible Securities describes the mechanics and behavior of convertible securities in comprehensive yet easy-to-understand language. Written for discerning investors, including corporate CIOs and CFOs, financial investment academics, and financial advisors, Convertible Securities provides quantitative insights and theories presented in a methodical and understandable format using recent and relevant examples. It explains the mathematical underpinnings of convertible securities and offers thorough analyses of convertibles from every angle, including those of various types of investors and issuers and numerous related disciplines (tax, performance analysis, accounting, risk management, and others). Topics include: Unique and Valuable Features in Convertible Bonds and Convertible Preferred Stocks How Savvy Investors Use Convertibles in their Portfolios How CFOs Optimize Corporate Capital Structures with Convertibles Valuation & Quantitative Properties of Convertibles Psychology and Investing in Convertibles Asset Allocation Models that Weigh the Advantages of Convertibles Practical Considerations for Convertible Investors―and much more! A high value-added asset class with a unique record of achieving equity-like returns with less risk than outright investment in common stocks, convertible securities are perfect for times when markets are at their most unpredictable. Convertible Securities offers everything you need to make them work for you, now and in the future.
Download or read book New Evidence on the Valuation Effects of Convertible Bond Calls written by Sudip Datta and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the wealth effects of convertible bond call announcements on stockholders, straight bondholders, called and non-called convertible debtholders. We document that forced conversions are associated with a significant loss in firm value. The results suggest that convertible call announcements can trigger both negative signal and wealth transfer effects. We show that at least part of the negative effect on stock prices results from wealth transfer to straight bondholders. Our analysis also lends empirical validity to the common contention that called convertible bondholders suffer wealth expropriation due to the elimination of the premium. The wealth effect on non-called convertible debtholders is insignificant. Cross-sectional analysis reveals that the negative signal effect is important in explaining bond, stock and firm excess returns. Finally, we present evidence that refutes the notion that bonds are called to relieve the firm from restrictive debt covenants.
Download or read book NBER Reporter written by National Bureau of Economic Research and published by . This book was released on 1985 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The C F A Digest written by and published by . This book was released on 1983 with total page 726 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Midland Corporate Finance Journal written by and published by . This book was released on 1985 with total page 652 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Proceedings written by and published by . This book was released on 1986 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Consensus and Uncertainty in Economic Prediction written by Victor Zarnowitz and published by . This book was released on 1983 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The usual practice in economic forecasting is to report point predictions without specifying the attached probabilities. Periodic surveys of such forecasts produce group averages, which are taken to indicate the "consensus" of experts. Measures of the dispersion of individual forecasts around these averages are interpreted as indicating "uncertainty." However, consensus is best defined as the degree of agreement among the corresponding point predictions reported by different forecasters, while uncertainty is properly understood as referring to the diffuseness of the distributions of probabilities that individual forecasters attach to the different possible values of an economic variable. The NBER-ASA quarterly economic outlook surveys provide unique informationon probabilistic forecast distributions reported by a large number of individuals for changes in GNP and the implicit price deflator in 1969-81. These data permit comparisons of related point and probability forecasts from the same sources. The matched mean point forecasts and mean probability forecasts are found to agree closely. Standard deviations of point forecasts are generally smaller than the mean standard deviations of the predictive probability distributions for the same targets. Thus the former tend to understate uncertainty as measured by the latter. This is so particularly for short horizons
Download or read book Macroeconomic Planning and Disequilibrium written by Richard Portes and published by . This book was released on 1983 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
