trade-off theory
A trade-off theory of ownership and capital structure
... This paper sets out to explain the ownership and capital structure of two connected units that share a common controlling entity. We call them “units” instead of firms or banks, because in our model, as in Leland (2007), ...
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Testing static trade off theory and agency theory for a German sample
... static trade off theory and agency ...Agency theory expects a negative relationship between growth and leverage as leverage would increase agency ...
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A literature review of the trade−off theory of capital structure
... Miller theory of 1958, capital structure has attracted a lot of attention from different ...on trade off theory of capital ...the trade-off theory of capital ...this ...
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Determinants of Capital Structures Based on the Pecking Order Theory and Trade-off Theory
... order theory and trade-off theory on Indonesian companies in order to test the consistency of the imple- mentation of pecking order theory and trade-off theory in ...
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The Impact of Taxes on Firm Value and the Trade-off Theory of Capital Structure
... 1 1. Introduction In this paper, we offer a new perspective on testing the well known trade-off theory of capital structure. The key for our study is an observation that other things being equal, as ...
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Capital structure : testing pecking order theory and static trade-off theory in the current crisis
... a trade-off between the benefits of debt (tax shield, financial discipline) and the costs of debt (increased bankruptcy costs, agency ...order theory even ...firms trade-off, then what ...
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Pecking Order Theory and Trade-Off Theory of Capital Structure: Evidence From Indonesian Stock Exchange
... order theory and the trade-off theory of capital structure is among the most influential theories of firms’ capital ...The trade-off theory predicts optimal capital ...
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TRADE-OFF THEORY VERSUS PECKING ORDER THEORY: CAPITAL STRUCTURE DECISIONS IN A PERIPHERAL REGION OF PORTUGAL
... of Trade-Off Theory or to those of Pecking Order ...that Trade-Off and Pecking Order Theories are not mutually exclusive in explaining the capital structure decisions of ...of ...
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French firm's financing choices: towards a reconciliation of the static trade-off theory and the pecking order theory?
... 4 SMEs confirms the greatest explanatory power of the target ratio explanation. The industrial sector of the firms does not affect these results. In similar study, Molay (2005) tests two alternative theories of capital ...
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The Pecking Order Theory and the Static Trade Off Theory: Comparison of the Alternative Explanatory Power in French Firms
... static trade-off theory, which focuses on the benefits and costs of issuing debt, predicts that an optimal target financial debt ratio exists, which maximizes the value of the ...
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The Capital Structure through the Trade-Off Theory: Evidence from Tunisian Firm
... 2.1.1. Trade off models related to bankruptcy ...pay off the tax advantages of debt ...the trade-off theory is that the optimal capital structure exists and is determined by the ...
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Testing the Static Trade Off Theory of Capital Structure: A Corporate Governance Perspective
... the theory has evidenced a negative re- lationship between profits and ...the theory and identify the importance of strong corporate gover- nance structures as a factor motivating managers to issue ...
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Pecking Order and Trade-off Theory in Capital Structure Analysis of Family Firms in Indonesia
... with Trade-off Theory, which states that the firm’s assets will affect posi- tively and significantly affect the firm’s leverage (Harjito, ...
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Testing the static trade off theory and the pecking order theory of capital structure: Evidence from Dutch listed firms
... static trade off theory predictions on the relationship between the explanatory variables and long term debt ...order theory, contradictions were not found to be significant except for firm ...
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Testing the pecking order theory and static trade off theory of capital structure: Evidence from French listed firms
... The empirical studies have proven that a significant part of the capital structure can be explained by using the two theories. However, there are still many contradictions across these studies about the determinants of ...
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Do Tanzanian Companies Practice Pecking Order Theory, Agency Cost Theory or Trade-Off Theory? An Empirical Study in Tanzanian Listed Companies
... the trade–off theory, pecking order theory and agency cost theory in the Tanzanian ...cost theory in the Tanzania context but it is not statistically ...
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CAPITAL STRUCTURE: AN APPLICATION OF TRADE-OFF THEORY TO A SMALL E&P OIL AND GAS COMPANY
... the trade-off theory, examined the capital structure of Afren ...a trade-off theoretical framework, we find that the company can further minimize its cost of capital and increase its ...
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Static Trade-off theory or Pecking order theory which one suits best to the financial sector. Evidence from Pakistan.
... static trade-off theory is to minimize the cost of capital by employing an appropriate debt and equity ...tradeoff theory of capital structure states that in order to maintain the balance ...
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“An Empirical Investigation of Trade Off Theory on Hybrid Securities: Evidence from Malaysia Islamic Capital Market “
... static trade-off theory promulgates that firms have the ideal capital structures, which they determine by trading off the costs against the benefits of the employ of debt and ...static ...
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Linkages Between Value Based Performance Measurements and Risk Return Trade Off: Theory and Evidence
... pricing theory tries to understand the prices or values of claims to uncertain ...the theory as explaining why some assets pay higher average returns than ...
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