Search Results - subject:"Optimal leverage"

Explpring the use of the Kelly criterion for Basel capital requirement : an optimal and countercyclical appoach

Wong, Max C. Y. - In: Journal of risk management in financial institutions 8 (2015) 1, pp. 45-61

Persistent link: https://www.econbiz.de/10010526458

Ownership links, leverage and credit risk

Luciano, Elisa; Nicodano, Giovanna - Collegio Carlo Alberto, Università degli Studi di Torino - 2008

This paper explores the relationship between optimal leverage and credit risk under ownership links. It develops a … joint default probability is lower than that of stand alone units, despite their higher debt capacity. Higher group optimal … leverage and lower default probability increase value with respect to conglomerate mergers and stand alone arrangements …

Persistent link: https://www.econbiz.de/10005405547

Incorporating default risk into Hamada's Equation for application to capital structure

Cohen, Ruben D - Volkswirtschaftliche Fakultät, … - 2007

Implemented widely in the area of corporate finance, Hamada’s Equation enables one to separate the financial risk of a levered firm from its business risk. The relationship, which results from combining the Modigliani-Miller capital structuring theorems with the Capital Asset Pricing Model, is...

Persistent link: https://www.econbiz.de/10005837485

Investigation of optimal capital structure in Malaysia: a panel threshold estimation

Ahmad, Abd Halim; Abdullah, Nur Adiana Hiau - In: Studies in Economics and Finance 30 (2013) April, pp. 108-117

Purpose – The purpose of this paper is to investigate the effect of leverage on Malaysian listed firms' value and the optimal level of debt at which a firm could maximize its value. Design/methodology/approach – The authors employ an advanced panel threshold regression estimation developed...

Persistent link: https://www.econbiz.de/10010815145

Investigation of optimal capital structure in Malaysia: a panel threshold estimation

Halim Ahmad, Abd; Adiana Hiau Abdullah, Nur - In: Studies in Economics and Finance 30 (2013) 2, pp. 108-117

Persistent link: https://www.econbiz.de/10015013670

Investigation of optimal capital structure in Malaysia: a panel threshold estimation

Ahmad, Abd Halim; Abdullah, Nur Adiana Hiau - In: Studies in Economics and Finance 30 (2013) April, pp. 108-117

Persistent link: https://www.econbiz.de/10010691557

Investigation of optimal capital structure in Malaysia : a panel threshold estimation

Ahmad, Abd Halim; Abdullah, Nur Adiana Hiau - In: Studies in economics and finance 30 (2013) 2, pp. 108-117

Persistent link: https://www.econbiz.de/10009772982

Capital Structure Determinants An Empirical Study of Swedish Companies

Song, Han-Suck - Centre of Excellence for Science and Innovation … - 2005

This paper analysis the explanatory power of some of the theories that have been proposed in the literature to explain variations in capital structures across firms. In particular, this study investigates capital structure determinants of Swedish firms based on a panel data set from 1992 to 2000...

Persistent link: https://www.econbiz.de/10005645011

When does leverage hurt productivity growth? A firm-level analysis

Coricelli, Fabrizio; Driffield, Nigel; Pal, Sarmistha; … - In: Journal of International Money and Finance 31 (2012) 6, pp. 1674-1694

In the wake of the global financial crisis, several macroeconomic contributions have highlighted the risks of excessive credit expansion. In particular, too much finance can have a negative impact on growth. We examine the microeconomic foundations of this argument, positing a non-monotonic...

Persistent link: https://www.econbiz.de/10011048504

Dynamic Optimal Capital Structure and Technical Change

Lööf, Hans - Centre of Excellence for Science and Innovation … - 2004

The importance of capital structure is explored by comparing existing archetypes of financial systems through a new methodological application. Differences in firms’ cost of capital show that capital structure is relevant in R&D and other investment decisions. The conclusions are that 1) there...

Persistent link: https://www.econbiz.de/10005644969