Judgment Still Rules Capital Structure

September 1998
Financial Executive;Sep/Oct98, Vol. 14 Issue 5, p53
Academic Journal
The article reports on a study, "Building Value with Capital-Structure Strategies," by Henry A. Davis and Dr. William W. Sihler, which was sponsored by the Financial Executives Research Foundation. The research focused on 13 case studies concerning the capital-structure decisions in public and private companies. The study suggests that an organization's value is based on operating performance and asset risk. The low-debt companies of Amgen, Oracle Corp. and SymmetriCom Inc. are mentioned, as well as Georgia-Pacific, Marriott International, Monsanto, Home Depot, General Electric, and Paychex. Host Marriott and Sheplers were the only high-debt companies in the study.


Related Articles

  • Smart Financial Management: The Essential Reference for the Successful Small Business.  // Qualified Remodeler;Jan2005, Vol. 31 Issue 1, p14 

    Reviews the book "Smart Financial Management: The Essential Reference for the Successful Small Business," by William W. Sihler, Richard D. Crawford and Henry A. Davis.

  • Refis and Divis Flood Loan Market. Clouse, Carol J. // High Yield Report;3/19/2012, p7 

    The article reports that nearly all of the deals that have launched on the leveraged loan market in the U.S. were refinancings or dividend recapitalization, or the increasingly prevalent refinancing/dividend.

  • EQUAL ACCESS AND MILLER'S EQUILIBRIUM. Shelton, Judy // Journal of Financial & Quantitative Analysis;Nov81, Vol. 16 Issue 4, p603 

    The article reports on capital structure and equal access, and it discusses the paper, "Debt and Taxes" by M. Miller. Miller analyzed aggregate corporate debt through an equilibrium model and found that there is no bearing on the market value of a firm whether capital is earned through debt or...

  • Socio-cultural heritage and financial decisions: An empirical study. Rihab, Ben Atitallah; Lotfi, Ben Jedidia // Educational Research (2141-5161);Nov2011, Vol. 2 Issue 11, p1685 

    This research proposes to introduce the sociology of culture to explain variations in national corporate capital structures. With the difference in standard finance theories that suggest that financing decisions should be determined only by rational considerations, this research adopts the...

  • An alternative test of the trade-off theory of capital structure. Canarella, Giorgio; Nourayi, Mahmoud; Sullivan, Michael J. // Contemporary Economics;2014, Vol. 8 Issue 4, p365 

    The purpose of this paper is to investigate the stochastic behavior of corporate debt ratios utilizing a balanced panel of 2,556 publicly traded U.S. firms during the period 1997-2010. We partition the panel into ten economic sectors and perform panel unit root tests on each sector employing...

  • Perceived Relationship between Corporate Capital Structure and Firm Value in the Kenyan Listed Companies. Oluwagbemiga, Oyerogba Ezekiel // Research Journal of Finance & Accounting;2013, Vol. 4 Issue 19, p157 

    The purpose of this study was to establish the perceived relationship between corporate capital Structure and Firm value in the Kenyan Listed Companies. The study employed an explanatory research design. The population of the study consisted of 61 companies listed on the NSE. The sample size for...

  • Homogeneity Versus Heterogeneity in Debt Structure: A Study Using Panel Data. Santos Póvoa, Angela Cristiane; Toshiro Nakamura, Wilson // Revista Contabilidade & Finanças - USP;Jan-Apr2014, Vol. 25 Issue 64, p19 

    This article argues that new contributions to the study of capital structure can be obtained from the study of corporate debt structure. More specifically, it addresses the issue of homogeneity and heterogeneity in debt structure, including its relevance and determinants, and incorporates a...

  • Valoración de empresas: conceptos y metodología moderna. Caboblanco Santamaría, Luis // Estrategia Financiera;2011, Vol. 26 Issue 288, p16 

    No abstract available.

  • Rebalanceamento da Estrutura de Capital: Endividamento Setorial e Folga Financeira. Saber Campos, Anderson Luis; Toshiro Nakamura, Wilson // RAC - Revista de Administração Contemporânea;2015 especial, Vol. 19, p20 

    We assume a model in which a firm's indebtedness is strongly influenced by a fund's supply side because creditors and investors (users of CAPM and market multiples) assess their exposure and risk level at relative bases (similar companies). This behavior induces firms' capital structure targets...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics