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I study the relationship between debt maturity and agency conflicts between controlling and minority shareholders in unlisted firms. Exploiting cross-provinces variance in the development of local credit markets, I find a negative joint effect of ownership concentration and short-term bank debt...
Persistent link: https://www.econbiz.de/10013004619
La versión española de este artículo se puede encontrar en: 'http://ssrn.com/abstract=2685207' http://ssrn.com/abstract=2685207.We discuss the relevance of personal taxes on Tax Shields. Interest and taxes are the basis for defining an optimal capital structure. When personal taxes are...
Persistent link: https://www.econbiz.de/10012970934
We present the derivation of cost of capital under the assumption of risky tax shields discounted with the cost of levered equity. We show that the formulation is consistent and is derived from basic financial principles. This formulation is valid for finite cash flows and non growing...
Persistent link: https://www.econbiz.de/10013133138
I identify three sources of risk for the tax shields: two of them associated to the risk of debt and one associated to the operating risk. I present a set of conditions for defining risky debt associated to cash flow and not to accounting earnings. I explain why realization of tax shields for...
Persistent link: https://www.econbiz.de/10013141867
This paper empirically examines how debt covenants impact the capital structure choices of firms, by utilizing an exogenous accounting based shock to the distance to covenant violation. We find that, on average, the shock to debt capacity had a positive impact on the debt choices of all treated...
Persistent link: https://www.econbiz.de/10013114176
The research on women entrepreneurship has mainly studied these topics: i) the characteristics and motivations (Brush and Hisrich, 1991; Pablo-Martí et al., 2014), ii) the strategic choice (Verheul et al., 2008), iii) the role of leadership (Schwartz, 1976; Justo et al. 2006)), iv) the entry barriers...
Persistent link: https://www.econbiz.de/10011481696
Financial structure of the company refers to the structure of financing of business assets and concerns the relationship between their own and borrowed sources of financing. One of the company’s financial goals is to provide optimal financial structure that has the purpose of maximizing...
Persistent link: https://www.econbiz.de/10011588163
The aim of this paper is to find which of two theories of capital structure - trade-off theory or pecking order theory - best explains the capital structure decision of non-state firms during the post-transition process in Viet Nam. We also investigate the effect of human capital, institutional...
Persistent link: https://www.econbiz.de/10011874005
In this note, we comment on and discuss the weirdness and absurdity of the idea that Professor Fernandez has argued for. The weirdness or absurdity of a theory does not automatically disqualify a theory; however, perhaps another review of the implications of the theory may have some merit. It...
Persistent link: https://www.econbiz.de/10012872291
The Spanish version of this paper can be found http://ssrn.com/abstract=1899685This paper estimates the value of tax shields, using the discounted cash flow method for 23 major non financial firms listed in the Bolsa de Valores de Colombia (Colombian Stock Exchange) between 2001 and 2010. Our...
Persistent link: https://www.econbiz.de/10012857389