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Overvalued Equity and Financing Decisions (Presentation Slides)

Dong, Ming - 2018

These are the presentation slides for the paper. We test whether and how equity overvaluation affects corporate financing decisions using an ex ante misvaluation measure that filters firm scale and growth prospects from market price. We find that equity issuance and total financing increase with...

Persistent link: https://www.econbiz.de/10012919135

Why Do Financially Unconstrained Firms Borrow to Repurchase Shares?

Gyimah, Daniel - 2019

We study the impact of financial constraints on cross-market arbitrage. We find that financially constrained firms are more likely to conduct debt-financed share repurchases. Such repurchases tend to reduce investments and increase financial distress risks, especially when financially...

Persistent link: https://www.econbiz.de/10012902979

Payoff Structure, External Corporate Governance and Financing Decision of Firms

Chang, Shih-Chung - 2018

. Contrary to the prediction of pecking order theory, it is shown that good projects should be financed with equity, to take …

Persistent link: https://www.econbiz.de/10012909239

Bond Market Transparency and Firm’s Financing Decisions

Izadi, Mohammad - 2022

I examine the effects of transparency in the secondary market on the capital structure of firms. To identify it, I rely on a quasi-experiment in which the 2002 regulations of TRACE mandated the public dissemination of post-trade pricing and volume information for corporate bonds. Dissemination...

Persistent link: https://www.econbiz.de/10013492656

On the stability of capital structure of Nigerian quoted firms

Paseda, Oluseun A.; Ayadi, Olusegun Felix - In: International journal of management, economics and … 12 (2023) 1, pp. 1-28

One of the central debates in the empirical capital structure literature is the issue of capital structure stability. The purpose of this study is to examine the debate in the Nigerian context where it is largely an underexplored issue. This study employed the traditional leverage adjustment...

Persistent link: https://www.econbiz.de/10013550220

Access to Capital and Capital Structure of the Firm

Shamshur, Anastasiya - 2010

The paper examines the importance of financial constraints for firm capital structure decisions in transitions economies during 1996-2006 using endogenous switching regression with unknown sample separation approach. The evidence suggests that differences in financing constraints have a...

Persistent link: https://www.econbiz.de/10013135335

Corporate Hedging and Financial Contracting

Ferguson, Michael F. - 2012

This paper develops a theory of corporate hedging in a financial contracting framework. In an economy with moral hazard …

Persistent link: https://www.econbiz.de/10013114726

Are Corporate Default Probabilities Consistent with the Static Tradeoff Theory?

Hovakimian, Armen - 2011

Default probability plays a central role in the static tradeoff theory of capital structure. We directly test this … theory by regressing the probability of default on proxies for costs and benefits of debt. Contrary to predictions of the … theory, firms with higher bankruptcy costs, i.e., smaller firms and firms with lower asset tangibility, choose capital …

Persistent link: https://www.econbiz.de/10013122204

Are Corporate Default Probabilities Consistent with the Static Tradeoff Theory?

Hovakimian, Armen - 2011

Probability of default plays a central role in the static tradeoff theory of capital structure. We provide a direct … test of this theory by regressing the probability of default, measured by S&P credit ratings and Moody's KMV Expected …. Contrary to predictions of the theory, firms with high bankruptcy costs, that is smaller firms and firms with lower asset …

Persistent link: https://www.econbiz.de/10013122234

Firm Financing Choices in a Thin, Capital Constrained Market

Smith, David J. - 2012

This paper examines the financing choices made by New Zealand firms and the factors that influence those choices over the period 1984 to 2009. New Zealand firms are faced with relatively thin capital markets that lack scale and participation. The paper therefore provides an alternative...

Persistent link: https://www.econbiz.de/10013103458