This paper broadens perpetuity gain to level (GL) research by analyzing the role of growth within the capital structure model (CSM) formalized by Hull (2007). We contrast the cost of using internal equity versus external equity when expanding a firm's assets. Contrary to pecking order theory, we...

This paper uses a multivariate framework to extend the recent univariate seasoned equity offering (SEO) research by Hull, Kwak and Walker (2010) that investigates the valuation impact of inside ownership. Our multivariate findings add to the univariate findings as we show that the inside...

This paper broadens perpetuity gain to leverage (GL) research by analyzing the role of growth within the Capital Structure Model (CSM) formalized by Hull (2007). We demonstrate that internal equity is more expensive than external equity due to the double corporate taxation of cash flows...

In this paper, I extend the stock-for-debt research by investigating whether stock value is influenced by how a firm changes its leverage ratio in relationship to its industry leverage ratio norm. I find that announcement-period stock returns for firms moving quot;away fromquot; industry...

Purpose – The purpose of this paper is to instruct upper level business students on the intricacies of the debt-equity choice with the emphasis on showing the interrelation of this choice with the plowback-payout choice. Design/methodology/approach – The paper is designed around a...