Academic literature on the topic 'Theory of capital structure'

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Journal articles on the topic "Theory of capital structure"

1

Ardalan, Kavous. "Capital structure theory: Reconsidered." Research in International Business and Finance 39 (January 2017): 696–710. http://dx.doi.org/10.1016/j.ribaf.2015.11.010.

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2

Pontoh, Winston, and Novi Swandari Budiarso. "Firm characteristics and capital structure adjustment." Investment Management and Financial Innovations 15, no. 2 (2018): 129–44. http://dx.doi.org/10.21511/imfi.15(2).2018.12.

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The adjustment for the firm capital structure is unclear from perspectives of trade-off theory, pecking order theory, life cycle theory, market timing theory, and free cash flow theory, since many research findings contradict each other. Adjustments for the capital structure are complex, since the conditions for each firm are different. The objective of this study is to provide empirical evidence of how firms adjust capital structure in relationship with maturity in context of trade-off, pecking order, free cash flow, and market timing theory. In terms of hypotheses testing, this study conducts logistic regression analysis with 138 Indonesian public firms as the sample in the observed period from 2010 to 2015. To distinguish the results, this study controls the sample by size and age based on the median. The study reports that preferences for the source of funds based on the cost of capital, internal conflict, and firm maturity indicate adjustments for the firm capital structure. Based on Indonesian firms, the form of capital structure in developing countries can refer to a single model or a combination of the trade-off model and pecking order model, as well as market timing.
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3

Abeywardhana, D. K. Y. "Capital Structure Theory: An Overview." Accounting and Finance Research 6, no. 1 (2017): 133. http://dx.doi.org/10.5430/afr.v6n1p133.

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Capital structure is still a puzzle among finance scholars. Purpose of this study is to review various capital structure theories that have been proposed in the finance literature to provide clarification for the firms’ capital structure decision. Starting from the capital structure irrelevance theory of Modigliani and Miller (1958) this review examine the several theories that have been put forward to explain the capital structure.Three major theories emerged over the years following the assumption of the perfect capital market of capital structure irrelevance model. Trade off theory assumes that firms have one optimal debt ratio and firm trade off the benefit and cost of debt and equity financing. Pecking order theory (Myers, 1984, Myers and Majluf, 1984) assumes that firms follow a financing hierarchy whereby minimize the problem of information asymmetry. But neither of these two theories provide a complete description why some firms prefer debt and others prefer equity finance under different circumstances.Another theory of capital structure has introduced recently by, Baker and Wurgler (2002), market timing theory, which explains the current capital structure as the cumulative outcome of past attempts to time the equity market. Market timing issuing behaviour has been well established empirically by others already, but Baker and Wurgler (2002) show that the influence of market timing on capital structure is regular and continuous. So the predictions of these theories sometimes acted in a contradictory manner and Myers (1984) 32 years old question “How do firms choose their capital structure?” still remains.
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4

HARRIS, MILTON, and ARTUR RAVIV. "The Theory of Capital Structure." Journal of Finance 46, no. 1 (1991): 297–355. http://dx.doi.org/10.1111/j.1540-6261.1991.tb03753.x.

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5

Lane, Philip R., and Gian-Maria Milesi-Ferretti. "External Capital Structure: Theory and Evidence." IMF Working Papers 00, no. 152 (2000): 1. http://dx.doi.org/10.5089/9781451857085.001.

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6

Harris, Milton, and Artur Raviv. "Errata: The Theory of Capital Structure." Journal of Finance 47, no. 4 (1992): 1659. http://dx.doi.org/10.2307/2328964.

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7

Bayless, Mark E., and J. David Diltz. "SECURITIES OFFERINGS AND CAPITAL STRUCTURE THEORY." Journal of Business Finance & Accounting 21, no. 1 (1994): 77–91. http://dx.doi.org/10.1111/j.1468-5957.1994.tb00306.x.

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8

Wong, Kit Pong. "A regret theory of capital structure." Finance Research Letters 12 (February 2015): 48–57. http://dx.doi.org/10.1016/j.frl.2014.12.001.

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9

Umdiana, Nana, and Shifa Tivana. "Determinan Struktur Modal Dalam Perspektif Pecking Order Theory Dan Agency Theory." Akuntabilitas 13, no. 2 (2020): 191–204. http://dx.doi.org/10.15408/akt.v13i2.17337.

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The capital structure seen from the perspective of pecking order theory explains that companies are more likely to prefer internal funding than external companies. Pecking Order Theory explains why highly profitable companies generally have less debt. This study aims to discuss Liquidity, Asset Structure, Business Risk, Growth Opportunity, Managerial Ownership of Capital Structures on Manufacturing Companies of the basic Consumer Good Industry Sector listed on the Indonesia Stock Exchange period 2016- 2019.This type of research is an associative causal research with the type of time series. The sample was selected using the purposive sampling method. Data analyzed amounted to 40. Data was tested using multiple linear regression analysis.The result of this study indicate that Liquidity is significant affect the Capital Structure. Asset Structure, Business Risk, Growth Opportunity, Managerial Ownership did not affect the Capital Structures.
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10

Brounen, Dirk, and Piet M. A. Eichholtz. "Capital Structure Theory: Evidence from European Property Companies' Capital Offerings." Real Estate Economics 29, no. 4 (2001): 615–32. http://dx.doi.org/10.1111/1080-8620.00025.

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