Results 261 to 270 of about 9,435,066 (302)

The Trade-Off Theory of Corporate Capital Structure

SSRN Electronic Journal, 2020
Abstract The trade-off theory of capital structure says that corporate leverage is determined by balancing the tax-saving benefits of debt against dead-weight costs of bankruptcy. The theory was developed in the early 1970s and despite a number of important challenges, it remains the dominant theory of corporate capital structure.
Hengjie Ai, Murray Z. Frank, Ali Sanati
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Theory of Capital Structure

2014
Das Ziel dieser Arbeit ist es einen Überblick über die Unternehmenskapitalstruktur, sowohl aus theoretischer als auch aus empirischer Sicht, zu geben. Der erste Teil behandelt die theoretische Kapitalstrukturforschung. Fünf der wichtigsten Theorien werden beschrieben, beginnend mit Modigliani und Miller, Trade-off Theorie, Pecking-Order Theorie ...
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Growth Stocks and Corporate Capital Structure Theory

The Journal of Finance, 1975
MORE THAN A DECADE AGO, with respect to the validity of Modigliani and Miller's homemade leverage thesis-namely, their Propositions I and II (see [24, 25])-under growth, Durand [6] expressed pointed skepticism by arguing that the said thesis is valid only under perfect markets where the market value of stock equals its book value.' Since then many ...
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On the Existence of an Optimal Capital Structure: Theory and Evidence

The Journal of Finance, 1984
ONE OF THE MOST contentious issues in the theory of finance during the past quarter century has been the theory of capital structure. The geneses of this controversy were the seminal contributions by Modigliani and Miller [18, 19]. The general academic view by the mid-1970s, although not a consensus, was that the optimal capital structure involves ...
Bradley, Michael, Jarrell, Gregg A, Kim, E Han   +2 more
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On the Dynamic Capital Structure of Nations: Theory and Empirics

SSRN Electronic Journal, 2019
We analyze the optimal capital structure of a nation from a corporate finance perspective. In particular, we draw an analogy between a nation's fiat money and corporate equity following Bolton and Huang (2018). Based on dynamic capital structure theory, we develop a stochastic model to determine the optimal combination of fiat money and foreign ...
Barth, James R., Sun, Yanfei, Ni, Yinan
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A Theory of Optimal Capital Structure

The Bell Journal of Economics, 1976
This paper presents a multiperiod model of firm valuation derived under the assumptions that bankruptcy is possible and that secondary markets for assets are imperfect. Given the assumption that the probability of bankruptcy is zero, the model is formally identical to that proposed by Modigliani and Miller.
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The Norm Theory of Capital Structure: International Evidence

SSRN Electronic Journal, 2012
AbstractAkerlof proposes that the norms of decision makers can bridge the gap between New Classical economic theories and conflicting empirical evidence. We apply his framework to cross‐country capital structure decision making and propose a norm theory of capital structure.
Lam, S.-S., Zhang, W., Lee, R.R.C.
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Capital structure theory: Reconsidered

Research in International Business and Finance, 2017
Abstract In the mainstream of the academic field of finance, the Modigliani and Miller's (1958) proof of capital structure irrelevance theory, has been praised as the cornerstone of modern scientific finance. However, the capital structure irrelevance theory is based on a set of assumptions, which are both unrealistic and contradictory to the main ...
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Capital Structure Theory and REIT Security Offerings

The Journal of Finance, 1988
ABSTRACTIn this paper, we examine the stock price reactions to announcements of new security offerings by Real Estate Investment Trusts (REITs). REITs offer a unique setting in which to study these events because they do not pay taxes at the firm level.
Howe, John S, Shilling, James D
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OVERVIEW OF CAPITAL STRUCTURE THEORY [PDF]

Studies in Business and Economics, 2014
The aim of this paper is to provide a comprehensive review on two major theories of capital structure; pecking order theory and static-trade off theory in regard with achieving an optimal capital structure. Researchers believed bankruptcy costs, transactions costs, agency conflicts, adverse selection and taxes has been attribute as major explanations ...
TAHA Roshaiza, SANUSI Nur Azura
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