In this paper, we put forward a theory of the optimal capital structure of the firm based on Jensen's (1986) hypothesis that a firm's choice of capital structure is determined by a trade-off between agency costs and monitoring costs. The problem of determining the optimal capital structure ...
Full ownership is no longer optimal only if there is a tax on intercorporate dividend. This theory rationalizes observations on multinationals, financial conglomerates, and family groups. Introduction Shareholders in control of multiple units may directly own equity in each of them. This gives rise ...
Optimal capital structure as a "point" is unreasonable, which greatly reduced the theoretical study of the actual guidance value. Optimal capital structure is possible in theory, but in reality it is hard to determine. Operability of an optimal capital structure should be the scope of a certain...
5、 流动性偏好 凯恩斯 Kenyes,J.M.,1936,"The general theory of employment, interest rate and money" in the collected writings of John Maynard Keeynes,Vol.6 London :Macmillan,1971 6、 真实经济周期模型 基德兰德、普雷斯科特 Kydland,F.E.and Prescott,E.C.. ...
s notion that there is great value to fundamental security analysis. The Capital Asset Pricing Model (CAPM) relates risk to return but always mistakes volatility, or beta, for risk. Modern Portfolio Theory (MPT) applauds the benefits of diversification in constructing an optimal portfolio. But ...
Earlier literature has studied either solvency distress with optimal capital structure or liquidity distress with cash and dividend policy. The analytically tractable framework presented in this paper allows one to study both sources of financial distress simultaneously and to explore the interplay of finan...
homogeneous expectations, etc., the capital structure decision of the firm is irrelevant. This conclusion depends entirely on the assumptions made. By relaxing the assumptions and analysing their effects, theory seeks to determine whether an optimal ...
摘要: This paper presents a cash flow formulation of the capital structure problem in the presence of corporate taxes. In contrast to the classic result of Modigliani and Miller, it is shown that an optimal capital structure does not involve exclusive reliance on debt financing....
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Their revised work, universally known as the Trade-off Theory of capital structure, makes the case that a company’s optimal capital structure should be the prudent balance between thetax benefitsthat are associated with theuse of debt capital, and the costs associated with the potenti...