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Capital structure of small companies in the Spanish footwear sector : relevant factors

Acedo-Ramírez, Miguel A.; Ayala Calvo, Juan Carlos; … - In: SERIEs : Journal of the Spanish Economic Association 4 (2013) 2, pp. 155-173

. However, the positive coefficient of growth opportunities and negative coefficient of debt cost, age and cash flows is … issue debt in order to discipline the firm’s managers. The relationship between growth opportunities and debt level was … firms are likely to have insufficient earnings to finance internally all of their growth. Furthermore, the low debt level of …

Persistent link: https://www.econbiz.de/10009756929

Firm Maturity and the Pecking Order Theory

Bulan, Laarni T. - 2011

We identify firms according to two life cycle stages, namely growth and maturity, and test the pecking order theory of … better than growth firms. Our findings show that firm maturity is an alternative proxy for debt capacity. In particular …

Persistent link: https://www.econbiz.de/10013130199

Testing the Pecking Order Theory : The Importance of Methodology

Vasiliou, Dimitrios - 2010

The purpose of this paper is to show that different methodologies may lead to different implications about the validity of the pecking order theory. Using data from Greek firms as a starting-point, the paper first investigates whether they follow the financing pattern implied by the pecking...

Persistent link: https://www.econbiz.de/10013137824

Capital Structure and Debt Priority

Attaoui, Sami - 2012

We study a defaultable firm's debt priority structure in a simple structural model where the firm issues senior and junior bonds and is subject to both liquidity and solvency risks. Assuming that the absolute priority rule prevails and that liquidation is immediate upon default, we determine the...

Persistent link: https://www.econbiz.de/10013113873

Financial integration and Emerging Markets Capital Structure

Zhang, Qiyu - 2012

integration, while negatively related to equity market integration. As integration proceeds to higher levels, high growth firms … seem to obtain more debt than low growth firms; large firms seem to obtain more debt - especially long-term debt, and issue …

Persistent link: https://www.econbiz.de/10013116668

Capital Structure Irrelevance : The Modigliani-Miller Theorem

Cheremushkin, Sergei Vasilievich - 2012

The paper provides review of Modigliani-Miller capital structure irrelevance proposition and its development since 1958. The paper suggests some pedagogical insights and introduce risk-shifting interpretations of the MM model. We also discuss shapes of cost of debt and cost of equity functions...

Persistent link: https://www.econbiz.de/10013102169

Testing Capital Structure Theories Using Error Correction Models : Evidence from the UK, France and Germany

Dang, Viet Anh - 2012

We employ an error correction model of leverage to test the trade-off and pecking order theories of capital structure for firms in the UK, France and Germany. The error correction framework extends the partial adjustment model by explicitly modelling changes in target leverage and past...

Persistent link: https://www.econbiz.de/10013107613

I Teoremi Di Modigliani-Miller : Una Pietra Miliare Della Finanza (The Modigliani-Miller Theorems: A Cornerstone of Finance)

Pagano, Marco - 2014

Article originally published in the volume 58 issue 230-231 of Moneta e Credito, 2005, pp. 255-67.I teoremi di Modigliani e Miller (MM) sono una pietra miliare della finanza per due ragioni. La prima è sostanziale e deriva dalla loro natura di “proposizioni di irrilevanza”: essi individuano...

Persistent link: https://www.econbiz.de/10013066072

The Profits-Leverage Puzzle Revisited

Frank, Murray Z. - 2014

The inverse relation between leverage and profitability is widely regarded as a serious defect of the tradeoff theory. We show that the defect is not with the theory but with the use of a leverage ratio in which profitability affects both the numerator and the denominator. Profitability directly...

Persistent link: https://www.econbiz.de/10013067880

The Modigliani-Miller Proposition after Fifty Years and its Relation to Entrepreneurial Finance

Mac an Bhaird, Ciaran - 2014

Frequently described as a ‘much ignored' focus of academic research, small venture financing has been the subject of a burgeoning literature in the past two decades. A considerable amount of research comprises empirical tests of theories developed in the field of corporate finance....

Persistent link: https://www.econbiz.de/10013069642