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External Financing, Growth and capital structure of the firms listed on the Athens Exchange

Athanasoglou, Panayiotis P.; Asimakopoulos, Ioannis - 2022

statistically significant supporting the “pecking order” theory. As expected, tangible assets and firm size have a positive and …

Persistent link: https://www.econbiz.de/10013404541

Bond Market Transparency and Firm’s Financing Decisions

Izadi, Mohammad - 2022

I examine the effects of transparency in the secondary market on the capital structure of firms. To identify it, I rely on a quasi-experiment in which the 2002 regulations of TRACE mandated the public dissemination of post-trade pricing and volume information for corporate bonds. Dissemination...

Persistent link: https://www.econbiz.de/10013492656

Untangling the Capital-Structure Puzzle : Solving for the Optimal Debt/Equity Ratio

Choi, Hak - 2015

This paper clarifies the capital structure puzzle. The traditional theories have forgotten to monitor the money raised from equity issuing. When included, the contribution of this source of finance becomes apparent. Though its productivity is the same as any money, including debt, its cost is...

Persistent link: https://www.econbiz.de/10013027949

Firms’ Debt-Equity Decisions When the Static Tradeoff Theory and the Pecking Order Theory Disagree

de Jong, Abe - 2013

This paper tests the static tradeoff theory against the pecking order theory. We focus on an important difference in … prediction: the static tradeoff theory argues that a firm increases leverage until it reaches its target debt ratio, while the … find that the pecking order theory is a better descriptor of firms' issue decisions than the static tradeoff theory. In …

Persistent link: https://www.econbiz.de/10013095730

Financing private credit

Boyarchenko, Nina; Elias, Leonardo - 2024

Using data on balance sheets of both financial and nonfinancial sectors of the economy, we use a "demand system" approach to study how lender composition and willingness to provide credit affect the relationship between credit expansions and real activity. A key advantage of jointly modeling the...

Persistent link: https://www.econbiz.de/10014634857

Corporate Governance and Financial Strategy

Bender, Ruth - 2013

Financial strategy is about how companies raise funds and manage them within their organizations. Corporate governance is relevant to both of these aspects, and an understanding of corporate governance is vital for an appreciation of corporate finance. This chapter from Corporate Financial...

Persistent link: https://www.econbiz.de/10013082113

Financing asset growth

Brennan, Michael J.; Kraft, Holger - 2013

In this paper we provide new evidence that corporate financing decisions are associated with managerial incentives to report high equity earnings. Managers rely most heavily on debt to finance their asset growth when their future earnings prospects are poor, when they are under pressure due to...

Persistent link: https://www.econbiz.de/10010226719

Latent Accounting Growth, Corporate Financing Decisions, and Return Predictability

Oad Rajput, Suresh Kumar - 2014

-known asset pricing models and return anomalies. Consistent with the Q theory of investment, they create value up to three lags …

Persistent link: https://www.econbiz.de/10013066402

Working Capital Management and Financing Decision : Synergetic Effect on Corporate Profitability

Ajibolade, Solabomi Omobola - 2013

Persuaded by the pecking order assumptions, where internal fund is preferred over debt and equity when financing investment projects, this study provided empirical evidence on the interaction between working capital management and corporate debt structure, and the effect of this on corporate...

Persistent link: https://www.econbiz.de/10013071720

Financing and Risks of French Firms

Xiao, Yingbin - 2009

This paper documents the role of capital markets in financing nonfinancial French firms since the adoption of the euro and analyzes its implications for risk using a structural model of credit risk. The analysis suggests that market financing has played a more important role in financing French...

Persistent link: https://www.econbiz.de/10013157971