Intro -- Series -- Title Page -- Copyright -- Dedication -- Preface -- About This Book -- Acknowledgments -- Foreword -- Chapter One: Basic Concepts -- Introduction -- Financial Statements -- The Income Statement -- The Balance Sheet -- The Cash Flow Statement -- Required Revenue for a Given...

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...

When larger market values of equity result in being subject to costly regulation, firms have incentives to shift their sources of financing toward debt and away from equity. We use the Sarbanes-Oxley Act of 2002 (SOX) as a setting to provide evidence of such incentives. Smaller firms were...

This study examines how a set of Canadian and German firms apply the quantitative capital disclosure requirements contained in IAS 1. We find significant inter-country differences in both the propensity to disclose a capital structure and in the form of the disclosure. Further, we find variation...

When larger market values of equity result in being subject to costly regulation, firms have incentives to shift their sources of financing toward debt and away from equity. We use the Sarbanes-Oxley Act of 2002 (SOX) as a setting to provide evidence of such incentives. Smaller firms were...

This research is aimed at analyzing the causality puzzle on the correlation between financial leverage and systematic risk (beta). Financial leverage and beta are usually considered as two proxies of risk derived from different domains: one ends at financial decision outcome, and the other...