Capital Structure and Firm Performance
Auteur : Ghosh Arvin
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.
Date de parution : 01-2008
15.2x22.9 cm
Date de parution : 02-2012
15.2x22.9 cm
Thème de Capital Structure and Firm Performance :
Mots-clés :
NYSE Firm; Cumulative Average Abnormal Return; Non-debt Tax Shields; Non-debt Tax; Firm Capital Structure; NASDAQ Firms; Optimal Capital Structure; Pecking Order Theory; AMEX Firm; Capital Structure Theory; Negative Relationship; Fixed Asset Ratios; Firm’s Debt Ratio; Average Abnormal Return; Managerial Share Ownership; Capital Structure Variable; Debt Ratio; Dummy Variables; OLS Regression Model; Collateral Availability; Firm’s Investment Opportunities; Ceo’s Total Compensation; OTC Market; Capital Structure Determinants; Ceo Compensation