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-term liabilities. We develop a structural model of a firm's value maximization problem that predicts that profitability of the firm …
Persistent link: https://www.econbiz.de/10010260991
We take a closer look at the links between corporate capital structure and productivity, profitability and access to … capital structure has no significant impact on the firms' profitability or productivity. However, the capital structure is …
Persistent link: https://www.econbiz.de/10010439503
correlation between leverage and profitability. When rebalancing costs are added to this theory, it predicts a positive leverage-profitability … the theory predicts it should be positive. Our results thus resurrect the leverage-profitability puzzle …
Persistent link: https://www.econbiz.de/10011847874
' capital structure, investment and profitability. The identification of the causal effects is based on the escape clauses in … stripping rule ; debt ratio ; profitability ; investment …
Persistent link: https://www.econbiz.de/10009579254
to identify the relevance of capital structure on profitability of ten BSE SENSEX companies from different industries … over the period of 10 years from 2007 to 2016. The data has been analysed using debt equity ratio, profitability ratios … used to measure the correlation between debt equity ratio and other profitability ratios …
Persistent link: https://www.econbiz.de/10012924254
The original and advanced Du Pont models fail to account for the firm's contributions to profitability regarding its … leverage). The advanced Du Pont model decomposed return on equity into two operating and financing profitability components …
Persistent link: https://www.econbiz.de/10012980541
We revisit the well-established puzzle that leverage is negatively correlated with measures of profitability. In … between profitability and leverage is positive. At other times, it is negative. These results are consistent with dynamic … profitability in the quarters prior to rebalancing events match the patterns predicted by these models. Our results are not driven …
Persistent link: https://www.econbiz.de/10013036317
This paper offers an alternative theory of corporate finance, to replace the invalid MM theorem. It derives the optimal amount of fund, which can be equity or debt. It introduces a new concept called marginal yield. It corrects the meaning of borrowing. It reproduces the MM theorem, to show its...
Persistent link: https://www.econbiz.de/10012989765
leverage significantly, and negatively, affects the profitability of listed firms in Kenya. However, leverage has no effect on … suggest that asset tangibility, sales growth and firm size are important determinants of profitability. Surprisingly, asset … tangibility consistently has a negative relationship with profitability. For small firms, our results indicate that sales growth …
Persistent link: https://www.econbiz.de/10013051000
Traditional theories of capital structure imply a consistent relationship between firm profitability and firm leverage …
Persistent link: https://www.econbiz.de/10013121259