J3; M4 Keywords: Financial accounting; Corporate governance; Agency; Moral hazard; Compensation $ We thank Thomas Dyckman‚ Thomas Hemmer‚ Edward Lazear‚ Thomas Lys (Editor)‚ Joseph McConnell‚ Raghuram Rajan‚ Richard Sloan (Discussant)‚ Ross Watts‚ Jerry Zimmerman (Editor)‚ Luigi Zingales‚ and seminar participants at Carnegie Mellon University‚ Columbia University‚ Cornell University‚ and the 2000 Journal of Accounting & Economics Conference for their helpful comments. We also would like to
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Corporate Financial Management Literature Review on Capital Structure Date: 7\12\2012 Name: Tudor Gheorghiu Student Id: 12254888 Introduction 3 Theories on Capital Structure 3 Modigliani and Miller theory on capital structure 3 Other theories relating to the firm`s capital structure 4 Trade-off theory 4 Pecking order theory 5 Agency theory 6 Choosing between theories 7 Empirical evidence 7 Developed countries: 7 Emerging markets: 9 Capital structure of privatised firms
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growth opportunities firm would bear more risk.Auberch (1985) argues that since fast growing firms have non-debt tax shields‚ the tax deductibility of interest payment is less valuable which conclude that leverage is inversely related to growth. Rajan and Zingales (1985) also found a negative relationship between growth and leverage. Recent studies has
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University of Nottingham Macmillan‚ I. C.‚ & Day‚ D. L. (1987). Corporate Ventures into Industrial Markets: Dynamics of Aggressive Entry Marcus‚ M. (1969).Profitability and Size of firm. Review of Economics and Statistics‚ February‚ 104– 107. Menard‚ S. (1995). Applied logistic regression analysis. Sage University paper series on qualitative applications in the social sciences‚ 07-106 Mendenhall‚ W.‚ & Sincich‚ T. (1993). A Second Course in Business Statistics: Regression analysis. Modigliani‚ F.‚ & Miller
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dilution‚ Journal of Financial Economics 15‚ 61-89. Baker‚ Malcolm‚ and Jeffrey Wurgler‚ 2000‚ The equity share in new issues and aggregate stock returns‚ Journal of Finance 55‚ 2219-2257. Barclay‚ Michael J.‚ Clifford W. Smith‚ Jr.‚ and Ross L. Watts‚ 1995‚ The determinants of corporate leverage and dividend policies‚ Journal of Applied Corporate Finance 7‚ 4-19. Bayless‚ Mark‚ and Susan Chaplinsky‚ 1996‚ Is there a window of opportunity for seasoned equity issuance? Journal of Finance 51‚ 253-278. Brav
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Capital Structure Stewart C. Myers The Journal of Economic Perspectives‚ Vol. 15‚ No. 2. (Spring‚ 2001)‚ pp. 81-102. Stable URL: http://links.jstor.org/sici?sici=0895-3309%28200121%2915%3A2%3C81%3ACS%3E2.0.CO%3B2-D The Journal of Economic Perspectives is currently published by American Economic Association. Your use of the JSTOR archive indicates your acceptance of JSTOR ’s Terms and Conditions of Use‚ available at http://www.jstor.org/about/terms.html. JSTOR ’s Terms and Conditions of Use
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articles and lecture notes. Course Secretary: TBA. ∗ Draft - may (certainly will!) be subject to change. 1 Part 1‚ Siming Recent Executive Compensation Topics‚ Exogenous Events‚ Corporate finance research can change the world • R. Rajan and J. Wulf‚ 2006‚ “Are perks purely managerial excess?” Journal of Financial Economics 79‚ 1-33. • D. Yermack‚ 2006‚ “Flights of fancy: Corporate jets‚ CEO perquisites‚ and inferior shareholder returns‚” Journal of Financial Economics 80‚ 211-242
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capital: a correction’‚ American Economic Review 53‚ 433–443. Myers‚ S. and Majluf‚ N. (1984)‚ ‘Corporate financing and investment decisions when firms have information that investors do not have’‚ Journal of Financial Economics 13‚ 187–221. Rajan‚ R. and Zingales‚ L. (1995)‚ ‘What do we know about capital structure choice? Some evidence from international data’‚ Journal of Finance 50‚ 1421–1460. Titman‚ S. and Wessels‚ R. (1988)‚ ‘The determinants of capital structure choice’‚ Journal of Finance‚ 43‚ 1-19
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INFLUENCE OF CAPITAL GEARING ON FIRM VALUE EMPIRICAL EVIDENCE FROM INDIAN TRANSPORT & LOGISTICS SECTOR ABSTRACT The transport and logistics sector is an essential contributor for the development of a country. Since the new economic reforms initiated in 1991‚ the transportation infrastructure of India has witnessed a paradigm change. The need for transport & logistics services grew at an annual rate of 10%‚ in the last decade the demand in the transport and logistics sector grew along with
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finance investments with retained earnings. Highly profitable firm may rely on retained earnings rather than debt (or new equity) finance). Whether national differnces in financing patterns affect cost of capital is a controversial issue. Rajan and Zingales argue that “It is doubtless more important for a company to worry about making the right investment that about exactly how to finance it.” INTERNATIONAL CAPITAL BUDGETING 4. The key aspect is the risk of the project. Does it fit with
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