What is an optimal capital structure?
An Empirical Model of Optimal Capital Structure
... It is important to highlight just what our cost functions capture. The cost functions of course incorporate the various possible costs of debt (e.g., expected bankruptcy costs, “debt overhang” cost that might ...
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Optimal Capital Structure and Industry Dynamics
... There are three strands of related literature. One strand beginning with Black and Sc- holes (1973) and Merton (1974) is in the framework of dynamic contingent claims analysis. Brennan and Schwartz (1984), Mello and ...
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Optimal Capital Structure with Endogenous Bankruptcy:
... the optimal stopping problem, but only represents a lower bound which has to be satisfied due to limited liability of ...the optimal stopping ...capturing what structural models are not able to ...
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The Optimal Capital Structure of Depository Institutions 1,2
... the Optimal Capital Structure for a Depository Institution As concluded above, pinning down the optimal capital structure for a depository institution is not so ...
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Dynamic Optimal Capital Structure and Technological Change
... the optimal capital structure, which is quite ...their capital structure by altering the composition of the new capital they ...about capital structure than small ...
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How investment opportunities impact optimal capital structure
... on optimal capital structure focuses on a single company optimising its capital structure in a world where the actions of its competitors are ...of optimal leverage (together ...
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Lease Financing, Credit Risk, and Optimal Capital Structure
... In this paper, we describe a continuous time structural framework to discuss the interaction between the use of debt and lease of a firm employing an optimal capital structure. It provides an insight ...
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2.5 Debt negotiation models and optimal capital structure
... Strategic default “Risky debt, bond convenants and optimal capital structure,” H. E. Leland, Journal of Finance, vol. 49 (1994), p. 1213-1252. Endogenous bankruptcies – firm’s management chooses the ...
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Optimal capital structure: Problems with the Harvard and Damodaran Approaches
... the optimal capital ...the optimal capital ...no optimal structure (the company’s value increases with the debt ratio) and the difference between required return to equity and ...
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Impact of Receivership Costs on the Optimal Capital Structure for Small Businesses
... the Optimal Capital Structure for Small Businesses Abstract: If the costs of bankruptcy are significant, then they will have an influence on a firm when it is determining its optimal ...
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Napoli Pizza wants to determine its optimal capital structure
... an optimal capital structure in a small business ...The capital asset pricing model (CAPM), the weighted average cost of capital model (WACC), and levered beta estimates are used to ...
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Investment timing and optimal capital structure under liquidity risk
... and optimal capital structure with perpetual ...debt structure is widely used in the literature of dynamic corporate finance for analytic tractability ...debt structure in Section ...
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An Investigation of the Determinants of BT s Debt Levels from : What does it tell us about the Optimal Capital Structure?
... for capital structure theories, but practitioners found it ...their optimal capital structure; any capital structure was equally as ...
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Equity Financing Regulation and the Optimal Capital Structure: Evidence from China
... The “Supply-side effect” on financial management caused by market imperfection has increasingly been concerned. During the transition period, there is strict securities regulation in China’s capital market, which ...
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The optimal capital structure in agricultural cooperatives under the revolving fund cycles
... Abstract Due to the fi nancial features specifi c to agricultural cooperatives, the paper constructs a constrained-maximizing model under the assumption that the fi nancial objective of an agricultural cooperative is to ...
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Achieving the Optimal Capital Structure and its Impact on Pakistani Banking Performance
... the Optimal Capital Structure and its Impact on Pakistani Banking Performance Raheel Gohar* and Adnan Shoaib** The purpose of this research paper is to identify the relationship between leverage and ...
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Optimal Capital Structure in Real Estate Investment: A Real Options Approach
... This article employs a real options approach to investigate the determinants of an optimal capital structure in real estate investment. An investor has the option to delay the purchase of an ...
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Risk Sharing, the Cost of Equity and the Optimal Capital Structure of the Regulated Firm
... is optimal to set prices so that the cost of equity is lower than the cost of ...the optimal capital structure is zero ...socially optimal for the regulated …rm to operate on a ...
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Application of Advanced Panel Threshold Regression Model to Estimate Optimal Capital Structure
... debt in the form of financial distress or agency costs. Ultimately, finds the “optimal capital structure”. This theory suggests that value-maximizing financial managers should employ capital ...
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Discussion Paper No Dynamic Optimal Capital Structure and Technological Change. Hans Lööf
... the optimal capital structure, which is quite ...their capital structure by altering the composition of the new capital they ...about capital structure than small ...
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