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Outsourcing and Financing Decisions in Industry Equilibrium

Kanatas, George - 2016

In a competitive product market, firms that buy their input have lower profit volatility than they would have if they … were to make it. This effect on profit volatility is an important consideration in the firms' capital structure choices and … cost advantage enjoyed by a supplier and passed on to its customers, in an industry equilibrium of a priori identical firms …

Persistent link: https://www.econbiz.de/10012999897

Does COVID-19 affect small and medium enterprises' capital structure in Vietnam?

Quoc Trung Nguyen Kim - In: Cogent economics & finance 11 (2023) 1, pp. 1-18

This study estimates the effect of COVID-19 on listed small and medium enterprises' capital structures in Vietnam from 2010 to 2020 by a dynamic panel model with 825 observations. Conducting the generalized method of moments, the findings show that COVID-19 is a significant factor affecting...

Persistent link: https://www.econbiz.de/10014500714

Hybrid Capital Structures and the Governance of State-Owned Companies : The Case of SABESP

Mirandola, Carlos Mauricio - 2010

Persistent link: https://www.econbiz.de/10013141012

Do Ultimate Owners Follow the Pecking Order Theory?

Zeidan, Rodrigo M. - 2017

Previous studies that have tested the pecking order theory have been inconclusive. In this paper, we use unique survey results for private Brazilian firms in order to investigate firms' choice of capital structure. We document that ultimate owners of privately owned firms follow the pecking...

Persistent link: https://www.econbiz.de/10012969788

Collateral and capital structure

Rampini, Adriano A.; Viswanathan, S. - In: Journal of Financial Economics 109 (2013) 2, pp. 466-492

We develop a dynamic model of investment, capital structure, leasing, and risk management based on firms' need to collateralize promises to pay with tangible assets. Both financing and risk management involve promises to pay subject to collateral constraints. Leasing is strongly collateralized...

Persistent link: https://www.econbiz.de/10010678713

Corporate Debt Maturity Choice in Transition Financial Markets

Stephan, Andreas; Talavera, Oleksandr; Tsapin, Andriy - 2008

This paper investigates the determinants of liability maturity choice in transition markets. We formulate a model of firm value maximization that describes managers' choice of optimal debt structure. The theoretical predictions are tested using a unique panel of 4,300 Ukrainian firms during the...

Persistent link: https://www.econbiz.de/10014218313

Mark-Up and Capital Structure of the Firm Facing Uncertainty

Chatelain, Jean-Bernard - 2010

This paper shows that, with pre-set price and capital decisions of firms facing uncertainty and credit rationing, price, mark up and the expected degree of capacity utilization (resp. capital) increases (resp. decreases) with the firm internal net worth

Persistent link: https://www.econbiz.de/10013134881

The Commitment Role of Equity Financing

Fahn, Matthias - 2014

Existing theories of a firm's optimal capital structure seem to fail in explaining why many healthy and profitable firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and the bankruptcy risk low. This holds in particular for...

Persistent link: https://www.econbiz.de/10013051377

Financial Leverage and Total Factor Productivity Growth : Firm-level Evidence from India

Mukherjee, Shahana - 2019

This study examines the relationship between firm leverage and total factor productivity for a large panel of manufacturing firms in India over the period: 2000-2015. Using the debt-ratio as a measure of firm leverage, the results indicate that there exists a negative relationship between...

Persistent link: https://www.econbiz.de/10012898380

Residual Income, SMVA : Financial Lever of Systemic Effect and Hidden Losses of the Capital

Matyash, Irina V. - 2011

conception of systemic market added cost is considered (Systemic Market Value Added, SMVA). In the article it is shown that this … company. At positive value of balance sheet profit the company can have the latent losses of the capital which can … financing and factor of cost of growth of the capital is explained. Action of financial lever of systemic effect is shown …

Persistent link: https://www.econbiz.de/10013125994