Detail Why do firms change their capital structure? Bibliografi Author: Barry, Michael James ; Taggart, Robert A. (Advisor) Topik: ECONOMICS; FINANCE|ECONOMICS; COMMERCE-BUSINESS Bahasa: (EN )    ISBN: 0-591-64566-1     Penerbit: BOSTON COLLEGE     Tahun Terbit: 1997     Jenis: Theses - Dissertation Fulltext: 9813664.pdf (0.0B; 4 download) Abstract I investigate whether firms change their capital structure to reach a target debt ratio. In effect, I investigate the existence of a target debt ratio. Candidate explanations for explaining changes in capital structure are the static tradeoff theory, the pecking order theory and/or market timing. I proxy for target debt ratios by using the industry average debt ratio and by estimating a target through a regression. The use of industry average debt ratios as a proxy for the target is suggested by Bowen, et. al. (1982), who find that firms move toward the industry average debt ratio. The use of an estimated target debt ratio is suggested in many previous cross-sectional capital structure studies which have estimated target debt ratios as a function of multiple factors. I find limited evidence in support of the static tradeoff theory, which implies the existence of a target debt ratio. I find there is much stronger evidence in support of the pecking order theory, which holds that a target debt ratio does not exist. I find limited evidence supporting firms' real cost of borrowing driving changes in leverage. When firms issue equity, I find there is stronger support for market timing with respect to firm-level performance than market-level performance. This is in accordance with the efficient market hypothesis. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

Copyright © 2006, 2007 Unika Atma Jaya, all rights reserved