In this paper we draw on recent progress in the theory of (1) property rights, (2) agency, and (3) finance to develop a theory of ownership structure for the firm.1 In addition to tying together ...
PDF Capital Structure: Definitions, Determinants, Theories and Link With
In this paper, the concept of capital structure, components of capital structure, and cost of each component will be explained. Also, the research will present the capital structure theories and the factors that may influence a firm's capital structure decision. Following that, the research
(PDF) Capital Structure Theories: A Comprehensive Review
Department of Business Admini stration, ILMA University, Kar achi, Pakistan. 2* [email protected]. 3 Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Karachi ...
(PDF) Determinants of capital structure: A literature review
DETERMINANTS OF CAPITAL STRUCTURE: A. LITERATURE REVIEW. Athenia Bongani Sibindi*. *University of South Africa, Department of F inance, Risk Management and Banking, P.O Box 392, UNI SA, South ...
Capital Structure
T he study of capital structure attempts to explain the mix of securities and financing sources used by corporations to finance real investment. Most of the research on capital structure has focused on the proportions of debt vs. equity observed on the right-hand sides of corporations' balance sheets. This paper is an introduction to that ...
PDF Capital Structure Theories: A Comprehensive Review
deliver best solution that expresses optimal capital structure. This paper addresses various capital structure theories that has been explained in the empirical literature. The main capital structure theories are discussed below. 1) Net Income (NI) Approach The Net Income approach is offered by Durand David in 1959 (Pandey, 2005). This theory
PDF Capital Structure: A Systematic Review of Theories and Concepts
the field of capital structure studies. The paper concludes that the various theories are not mutually exclusive, thus, for researchers to solve the capital structure puzzle, there is a need ... multitude of research that abounds in the field of corporate finance on capital structure decisions, the field of study still lacks an all-inclusive ...
PDF The Theory of Capital Structure
capital structure signals to outside investors the information of insiders. This stream of research began with the work of Ross (1977) and Leland and Pyle (1977). In another, capital structure is designed to mitigate inefficiencies in the firm's investment decisions that are caused by the information asymme-. try.
[PDF] A Review of Empirical Capital Structure Research and Directions
This paper reviews empirical capital structure research, concentrating on papers published since 2005. We begin by documenting three dimensions of capital structure variation: cross-firm, cross-industry, and within-firm through time. We summarize how well the traditional trade-off and pecking order approaches explain these sources of variation and highlight their empirical shortcomings. We ...
Full article: Influencing factors that determine capital structure
The figure indicates that research on capital structure determinants over the past 7 years is generally on a fluctuating trend with a downward trend from the years 2014 to 2016. However, in 2017, 11 papers representing 16% of the entire published papers being reviewed were recorded.
A Critical Literature Review of Capital Structure Theories
For those firms which prefer mixing the two approaches, what would be the best portion for the two approaches? This paper critically reviews the capital structure theories, which include Franco Modigliani and Merton Miller theorem, Trade-off theory of capital structure and taxes, Pecking order theory, The market timing theory and Agency cost ...
Research on capital structure determinants: a review and future
The prominence of research is assessed by studying the year of publication and region, level of economic development, firm size, data collection methods, data analysis techniques and theoretical models of capital structure from the selected papers. The review is based on 167 papers published from 1972 to 2013 in various peer-reviewed journals.
A meta-analysis: capital structure and firm performance
Introduction. Capital structure of the firm, as defined by Baker and Martin (2011), is the mixture of debt and equity that the firm employs to finance its productive assets, operations and future growth. It is a direct determinant of the overall costs of capital and contributes to the firm's total level of risks.
The Pecking Order Theory of Capital Structure: Where Do We Stand?
Open PDF in Browser. Add Paper to My Library. Share: ... The pecking order theory of corporate capital structure states that firms finance deficits with internal resources when possible. If internal funds are inadequate, firms obtain external debt. ... HKUST Business School Research Paper Series.
PDF The Impact of Capital Structure on the Firm Risk and Performance
The significance of the capital structure decision is underlined by the researchers through the empirical findings of its influence on the performance and solvency of the firm (Donaldson 1978). The cornerstone of the theoretical research pertaining to the capital structure was the seminal work done by Modigliani and Miller (1958). Their
(PDF) Influencing factors that determine capital structure decisions: A
Methodological approach of research papers on capital structure determinants Through Figure 3 , it is clear that most papers (97%) on capital structure determinants are quantitative.
Capital structure decisions and R&D investment: The contingency role of
This paper explores how the size of a firm influences the relationship between capital structure choices and research and development (R&D) investment. By analyzing data from publicly listed U.S. pharmaceutical firms between 2011 and 2020 and using an instrumental variables regression, we present evidence that the impact of capital structure on ...
The Trade-off Theory of Corporate Capital Structure
This paper provides a survey of the trade-off theory of corporate capital structure. First we provide an analysis of an equilibrium version of the theory. The firm raises debt from an investor. Debt provides interest tax shields but raises the probability of costly bankruptcy. The model provides closed form solutions for the quantity and price ...
The Effect of Capital Structure on Profitability: An Empirical Panel
Thus, the present study has been undertaken to evaluate the effect of capital structure on the profitability of Nifty 50 companies listed on National Stock Exchange of India from 2008 - 2017. The data has been analyzed by using descriptive statistics, correlation and multiple panel data regression models.
A Study on Impact of Capital Structure on Profitability of Companies
M S Ramaiah University of Applied Sciences Karnataka, India Email: [email protected], 2 [email protected], [email protected]. Abstract: Current research helps in understanding both positive and negative impact of capital structure on profits of Indian automobile companies by using variables like Return on ...
Broad Strategic Asset Allocation
This paper presents one justifiable set of inputs and finds that alternatives earn themselves a sizable strategic allocation. Investors are encouraged to compare these results with their own assumptions, constraints and allocations as they look to build a resilient portfolio for long-term investment success.
(PDF) Impact of Capital Structure on Firm Performance
PDF | The main focus of this essay is the relationship between capital structure and company performance. ... This paper aimed to research the interrelation between capital structure, corporate ...
Empirical Corporate Capital Structure
Corporate capital structure has been a key, challenging puzzle for finance for more than 50 years. ... Why do firms use the observed financing methods? The literatu. Skip to main content. Download This Paper. Open PDF in Browser. Add Paper to My Library. ... (November 21, 2022). HKUST Business School Research Paper No. 2022-091, Available at ...
A 3D Printed Serrated Contact Structure Triboelectric Nanogenerator for
Accordingly, the contact structure endows S-TENG with efficient energy harvesting efficiency. Compared to the flat structure, the serrated structure resulted in a 64%, 63%, and 47% improvement in performance indicators such as open-circuit voltage (V oc), short-circuit current (I sc), and transfer charge (Q sc) for S-TENG. Also, the serrated ...
(PDF) Capital Structure and Factors Affecting Capital Structure
focused our research paper on two theories namely -pecking. order theory and trade o theories. The pecking o theory. basically st ates that the rm resort to internal nances rst. and then debt ...
A 3D Printed Serrated Contact Structure Triboelectric Nanogenerator for
The wearable electronic devices integrated with 3D printing have attracted much attention, but the continuous power supply demand and limited application scenarios have limited their development. Here, we propose a 3D printed serrated contact structure triboelectric nanogenerator (S-TENG) designed for mechanical energy harvesting and swimming training safety monitoring. Leveraging the ...
(PDF) Capital structure determinants: A literature review
In this paper, we present the literature review on determinants of capital structure of the research being done, both in India as well as internationally, in the last one and a half decade. We ...
COMMENTS
In this paper we draw on recent progress in the theory of (1) property rights, (2) agency, and (3) finance to develop a theory of ownership structure for the firm.1 In addition to tying together ...
In this paper, the concept of capital structure, components of capital structure, and cost of each component will be explained. Also, the research will present the capital structure theories and the factors that may influence a firm's capital structure decision. Following that, the research
Department of Business Admini stration, ILMA University, Kar achi, Pakistan. 2* [email protected]. 3 Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Karachi ...
DETERMINANTS OF CAPITAL STRUCTURE: A. LITERATURE REVIEW. Athenia Bongani Sibindi*. *University of South Africa, Department of F inance, Risk Management and Banking, P.O Box 392, UNI SA, South ...
T he study of capital structure attempts to explain the mix of securities and financing sources used by corporations to finance real investment. Most of the research on capital structure has focused on the proportions of debt vs. equity observed on the right-hand sides of corporations' balance sheets. This paper is an introduction to that ...
deliver best solution that expresses optimal capital structure. This paper addresses various capital structure theories that has been explained in the empirical literature. The main capital structure theories are discussed below. 1) Net Income (NI) Approach The Net Income approach is offered by Durand David in 1959 (Pandey, 2005). This theory
the field of capital structure studies. The paper concludes that the various theories are not mutually exclusive, thus, for researchers to solve the capital structure puzzle, there is a need ... multitude of research that abounds in the field of corporate finance on capital structure decisions, the field of study still lacks an all-inclusive ...
capital structure signals to outside investors the information of insiders. This stream of research began with the work of Ross (1977) and Leland and Pyle (1977). In another, capital structure is designed to mitigate inefficiencies in the firm's investment decisions that are caused by the information asymme-. try.
This paper reviews empirical capital structure research, concentrating on papers published since 2005. We begin by documenting three dimensions of capital structure variation: cross-firm, cross-industry, and within-firm through time. We summarize how well the traditional trade-off and pecking order approaches explain these sources of variation and highlight their empirical shortcomings. We ...
The figure indicates that research on capital structure determinants over the past 7 years is generally on a fluctuating trend with a downward trend from the years 2014 to 2016. However, in 2017, 11 papers representing 16% of the entire published papers being reviewed were recorded.
For those firms which prefer mixing the two approaches, what would be the best portion for the two approaches? This paper critically reviews the capital structure theories, which include Franco Modigliani and Merton Miller theorem, Trade-off theory of capital structure and taxes, Pecking order theory, The market timing theory and Agency cost ...
The prominence of research is assessed by studying the year of publication and region, level of economic development, firm size, data collection methods, data analysis techniques and theoretical models of capital structure from the selected papers. The review is based on 167 papers published from 1972 to 2013 in various peer-reviewed journals.
Introduction. Capital structure of the firm, as defined by Baker and Martin (2011), is the mixture of debt and equity that the firm employs to finance its productive assets, operations and future growth. It is a direct determinant of the overall costs of capital and contributes to the firm's total level of risks.
Open PDF in Browser. Add Paper to My Library. Share: ... The pecking order theory of corporate capital structure states that firms finance deficits with internal resources when possible. If internal funds are inadequate, firms obtain external debt. ... HKUST Business School Research Paper Series.
The significance of the capital structure decision is underlined by the researchers through the empirical findings of its influence on the performance and solvency of the firm (Donaldson 1978). The cornerstone of the theoretical research pertaining to the capital structure was the seminal work done by Modigliani and Miller (1958). Their
Methodological approach of research papers on capital structure determinants Through Figure 3 , it is clear that most papers (97%) on capital structure determinants are quantitative.
This paper explores how the size of a firm influences the relationship between capital structure choices and research and development (R&D) investment. By analyzing data from publicly listed U.S. pharmaceutical firms between 2011 and 2020 and using an instrumental variables regression, we present evidence that the impact of capital structure on ...
This paper provides a survey of the trade-off theory of corporate capital structure. First we provide an analysis of an equilibrium version of the theory. The firm raises debt from an investor. Debt provides interest tax shields but raises the probability of costly bankruptcy. The model provides closed form solutions for the quantity and price ...
Thus, the present study has been undertaken to evaluate the effect of capital structure on the profitability of Nifty 50 companies listed on National Stock Exchange of India from 2008 - 2017. The data has been analyzed by using descriptive statistics, correlation and multiple panel data regression models.
M S Ramaiah University of Applied Sciences Karnataka, India Email: [email protected], 2 [email protected], [email protected]. Abstract: Current research helps in understanding both positive and negative impact of capital structure on profits of Indian automobile companies by using variables like Return on ...
This paper presents one justifiable set of inputs and finds that alternatives earn themselves a sizable strategic allocation. Investors are encouraged to compare these results with their own assumptions, constraints and allocations as they look to build a resilient portfolio for long-term investment success.
PDF | The main focus of this essay is the relationship between capital structure and company performance. ... This paper aimed to research the interrelation between capital structure, corporate ...
Corporate capital structure has been a key, challenging puzzle for finance for more than 50 years. ... Why do firms use the observed financing methods? The literatu. Skip to main content. Download This Paper. Open PDF in Browser. Add Paper to My Library. ... (November 21, 2022). HKUST Business School Research Paper No. 2022-091, Available at ...
Accordingly, the contact structure endows S-TENG with efficient energy harvesting efficiency. Compared to the flat structure, the serrated structure resulted in a 64%, 63%, and 47% improvement in performance indicators such as open-circuit voltage (V oc), short-circuit current (I sc), and transfer charge (Q sc) for S-TENG. Also, the serrated ...
focused our research paper on two theories namely -pecking. order theory and trade o theories. The pecking o theory. basically st ates that the rm resort to internal nances rst. and then debt ...
The wearable electronic devices integrated with 3D printing have attracted much attention, but the continuous power supply demand and limited application scenarios have limited their development. Here, we propose a 3D printed serrated contact structure triboelectric nanogenerator (S-TENG) designed for mechanical energy harvesting and swimming training safety monitoring. Leveraging the ...
In this paper, we present the literature review on determinants of capital structure of the research being done, both in India as well as internationally, in the last one and a half decade. We ...