In this paper, we develop and test empirically a model of capital structure. We show analytically that the square of 1 minus the debt ratio (total debt divided by total assets) is positively associated with the inverse of total assets and negatively associated with the log of total assets...

This study provides empirical evidence on the relationship between dividend payout ratios, executive compensation and agency costs in Italy. Corporate governance in Italy is distinguished by the fact that a large number of Italian firms are family-controlled, which may theoretically reduce...

Most universities solicit feedback from students at the end of a course in order to assess student perceptions of the course. This feedback is used for various objectives, including for evaluating teaching by academic administrators. One would therefore expect faculty to rationally take this...

We survey managers from 16 European countries to examine cross-country determinants of payout policy. We find that European managers' views on dividend policy are driven largely by factors similar to that of their U.S. peers. They strongly agree with Lintner's findings that dividends are...

The accounting and mutual fund scandals of the last few years have led to increased scrutiny over the information provided by financial services to investors. These scandals have cast doubt on the supposedly honest and impartial reporting of facts by the financial industry. This paper looks at...

Finance textbooks recommend the use of Net Present Value (NPV) as the evaluation tool for Capital Budgeting. Yet surveys of managers have consistently shown that managers prefer Internal rate of Return (IRR) to NPV. This article rigorously establishes the validity of the interpretation of IRR as...