TITLE

WHY CAPITAL STRUCTURE MAY NEVER BE THE SAME- AND shouldn't BE

AUTHOR(S)
Chatinover, Marvin A.
PUB. DATE
October 1986
SOURCE
FE: The Magazine for Financial Executives;Oct1986, Vol. 2 Issue 10, p24
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
Interviews Drexel Burnham vice chairman and chief executive officer Frederick H. Joseph, who shares his perspective on capital structure. Corporate financial executives' reaction to Joseph's which focuses on maximizing total return with less concern for ratio of debt to equity; Image of Drexel Burnham before the media; Perceived risks in high-yield bonds.
ACCESSION #
15161435

 

Related Articles

  • Comment on "The value of tax shields is NOT equal to the present value of tax shields". Fieten, Paul; Kruschwitz, Lutz; Laitenberger, J�rg; L�ffler, Andreas; Tham, Joseph; V�lez-Pareja, Ignacio; Wonder, Nicholas // Quarterly Review of Economics & Finance;Feb2005, Vol. 45 Issue 1, p184 

    Fernandez [2004; The value of tax shields is NOT equal to the present value of tax shields. Journal of Financial Economics, 73, 145-165] claims to derive a formula for the valuation of debt tax shields for firms with cash flows that grow perpetually at a constant rate. We show that his formula...

  • PRICE EARNINGS RATIOS, EARNINGS-PER-SHARE, AND FINANCIAL MANAGEMENT. Pringle, John J. // Financial Management (1972);Spring73, Vol. 2 Issue 1, p34 

    This article focuses on the importance of the price earnings (P/E) ratio to financial decision-making. Those who argue that a high P/E ratio favors the use of equity usually do so on grounds that the higher the P/E, the fewer the number of shares that must be issued for a given volume of funds...

  • Leverage Ratios, Industry Norms, and Stock Price Reaction: An Empirical Investigation of Stock-for-Debt Transactions. Hull, Robert M. // FM: The Journal of the Financial Management Association;Summer99, Vol. 28 Issue 2, p32 

    In this paper, I extend the stock-for-debt research by investigating whether stock value is influenced by how a firm changes its leverage ratio in relationship to its industry leverage ratio norm. I find that announcement-period stock returns for firms moving "away from" industry debt-to-equity...

  • Debt Capacity, Optimal Capital Structure, and Capital Budgeting Analysis. Hai Hong; Rappaport, Alfred // Financial Management (1972);Autumn78, Vol. 7 Issue 3, p7 

    The article focuses on the relevance of capital budgeting analysis to estimate the amount of debt capacity contributed by a certain project. The capital budgeting literature cited does not deal explicitly with the firm's optimal capital structure. In capital budgeting analysis, it is important...

  • Which Version of Equity Market Timing Affects Capital Structure? Chazi, Abdelaziz; Tripathy, Niranjan // Journal of Applied Finance;Spring/Summer2007, Vol. 17 Issue 1, p70 

    Under the equity market timing theory of capital structure, a firm's capital structure may be seen to represent the cumulative outcome of all the firm's efforts to time its equity issuance. We retest this theory using insider trading as a metric. We also differentiate between two versions of...

  • Debt Is Not Always a Bad Thing. Tran, Toan // Morningstar GrowthInvestor;Aug2006, Vol. 2 Issue 3, Special section p1 

    This article illustrates the importance of capital structure decision for a business startup. Bank debts, equity from investors or a mix of both are options available for business startups. The question of how a firm's capital structure will effect on its operations is critical for startups. The...

  • Impact of Firm Characteristics on Capital Structure of Iranian Listed Firms. Ebadi, Mehdi; Chan Kok Thim; Yap Voon Choong // European Journal of Economics, Finance & Administrative Sciences;Dec2011, Issue 42, p160 

    This research design to study determinant of capital structure and their impact on debt and equity structure of Iranian listed companies based on pecking order and trade off theory of capital structure. The study has been done by using panel data procedure for 72 Iranian companies listed on...

  • Impact of Ownership Structure on Debt Equity Ratio: A Static and a Dynamic Analytical Framework. Said, Hatem Ben // International Business Research;Jun2013, Vol. 6 Issue 6, p162 

    This study examines the determinants of capital structure as part of the agency theory. French corporate structure with its high corporate concentration provides able us to analyze how ownership structure affects debt policy. Emphasis is placed on the role of insiders and outsiders ownership in...

  • THE FIRM'S OPTIMAL DEBT-EQUITY COMBINATION AND THE COST OF CAPITAL. Baumol, William J.; Malkiel, Burton G. // Quarterly Journal of Economics;Nov67, Vol. 81 Issue 4, p547 

    This article provides a formal optimality analysis of debt-equity combination and cost of capital. The selection of a ratio of debt to equity in the firm's capital structure and the decision between retention of earnings or the issue of some type of security as a means of raising additional...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

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

Try another library?
Sign out of this library

Other Topics