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Myers, Stewart C. - 2003

This review evaluates the four major theories of corporate financing: (1) the Modigliani–Miller theory of capital …-structure irrelevance, in which firm values and real investment decisions are unaffected by financing; (2) the trade-off theory, in which … financing responds to managers’ personal incentives; and (4) the pecking-order theory, in which financing adapts to mitigate …

Persistent link: https://www.econbiz.de/10014023872

Financing investment: the choice between bonds and bank loans

Morellec, Erwan; Valta, Philip; Zhdanov, Alexei - 2014

investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory …

Persistent link: https://www.econbiz.de/10010258730

News about zero-leverage firms

Geelen, Thomas A. - 2016

-cycle theory of debt maturity …

Persistent link: https://www.econbiz.de/10011626255

Rollover traps

Della Seta, Marco; Morellec, Erwan; Zucchi, Francesca - 2016

We model the joint effects of debt maturity and cash holdings on default risk. When firms have short-term debt outstanding, negative cash flow shocks lead to a drop in liquid reserves and may cause firms to suffer losses when rolling over their debt, due to weaker fundamentals. This mechanism...

Persistent link: https://www.econbiz.de/10011516024

Debt financing and the failure of innovation companies : the application of the CHS model in U.S. stock markets

Nguyen Quang My; Sayim, Mustafa; Rahman, Hamid - In: Global economic review 48 (2019) 2, pp. 180-212

Persistent link: https://www.econbiz.de/10012177309

Tax Avoidance and Capital Structure : Empirical Evidence on Debt Covenants

Gabrielli, Alessandro - 2023

empirical evidence concerning the role of taxes in the Theory of Capital Structure. It reviews the studies investigating the … debt covenant violation varies in different agency settings. Consistent with the hypotheses drawn on the Agency Theory, the …

Persistent link: https://www.econbiz.de/10014282822