Detail Firm value, growth opportunities, and leverage Bibliografi Author: Higgins, Robert C. (Advisor); Danielson, Morris Glen Topik: ECONOMICS; FINANCE|BUSINESS ADMINISTRATION; MANAGEMENT|BUSINESS ADMINISTRATION; ACCOUNTING Bahasa: (EN )    ISBN: 0-591-03778-5     Penerbit: University of Washington     Tahun Terbit: 1996     Jenis: Theses - Dissertation Fulltext: 9637927.pdf (0.0B; 17 download) Abstract This manuscript develops and tests a tax shield-leverage cost model where the leverage cost driving a firm's capital structure decision is positively correlated with the value of its growth opportunities. This cost arises if the value of a firm's growth opportunities decreases as a result of the firm's efforts to avoid, or to cure, financial distress. The model predicts that (1) leverage and growth opportunities are negatively related, (2) leverage and profitability are positively related, and (3) leverage and business risk are negatively related within some, but not all, subsets of firms. While hypothesis (1) is similar to the primary conclusion of Myers (1977), this paper shows that the underinvestment cost defined by Myers (1977) yields an ambiguous prediction about the relationship between growth opportunities and leverage when evaluated within a tax shield-leverage cost framework. In addition, the manuscript shows why hypotheses (1) and (2) can be tested more directly when key variables are stated as ratios of adjusted asset book value, rather than as ratios of asset market value. Finally, empirical evidence regarding the three hypotheses is reported. This evidence supports hypothesis (1), and provides conditional support for hypothesis(3). While the evidence does not, as a whole, support hypothesis (2), a positive relationship between future taxable income and leverage is reported within some time periods, particularly for a subset of firms with low growth opportunity values. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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