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Overseas listing location and capital structure

Li, Peixin; Wang, Baolian - In: China Finance Review International 4 (2014), pp. 3-23

Chinese overseas listed companies are listed in the USA and Hong Kong. As the institutional quality of the USA is better than … authors argue that the better institutional environment of the USA can mitigate the information asymmetry problem and the … agency problem of financing via equity. Consequently, firms listed in the USA will rely more on equity and have lower …

Persistent link: https://www.econbiz.de/10010741348

Nonlinear modeling of target leverage with latent determinant variables: new evidence on the trade-off theory

Sabiwalsky, Ralf - 2008

The trade-off theory on capital structure is tested by modelling the capital structure target as the solution to a maximization problem. This solution maps asset volatility and loss given default to optimal leverage. By applying nonlinear structural equation modelling, these unobservable...

Persistent link: https://www.econbiz.de/10010263749