The Capital Structure Puzzle Revisited

Berens, James L.; Cuny, Charles J.

doi:10.1093/rfs/8.4.1185

Cited by 72 publications

(51 citation statements)

References 27 publications

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“…However, some authors have argued that interest coverage is an alternative measure of leverage (Berens and Cuny, 1995;and Andrade and Kaplan, 1997). For a mature firm with low expected growth, measuring leverage by debt ratios or interest coverage ratios will lead to similar conclusions.…”

Section: D) Interest Coveragementioning

confidence: 99%

Does the Source of Capital Affect Capital Structure?

2003

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractPrior work on leverage implicitly assumes capital availability depends solely on firm characteristics. However, market frictions that make capital structure relevant may be associated with a firm's source of capital. Examining this intuition, we find firms which have access to the public bond markets, as measured by having a debt rating, have significantly more leverage.Although firms with a rating are fundamentally different, these differences do not explain our findings. Even after controlling for firm characteristics which determine observed capital structure, and instrumenting for the possible endogeneity of having a rating, firms with access have 35 percent more debt.

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Section: D) Interest Coveragementioning

confidence: 99%

Does the Source of Capital Affect Capital Structure?

2003

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“…The decision to determine the funding of the capital structure will determine the company in performing its operating activities that will affect the value of the company. There are two views to determine the policy of capital structure, pecking order theory and trade off theory (Berens and Cuny, 1995). The policy of capital structure is influenced by various factors both inside and outside the company.…”

Section: Introductionmentioning

confidence: 99%

Dynamic Model of Firm Value: Evidence from Indonesian Manufacturing Companies

Thamrin

Syamsurijal

Sulastri

et al. 2018

Sriwijaya Int. J. of Dynamic Eco. And Buss.

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Abstract:This study aims to determine the factors that affect to firm value. The data used in this study is secondary data obtained from the Indonesia Stock Exchange which includes financial statements. This research sample uses 45 manufacturing companies, the period 2012-2016. The analysis used is a quantitative approach with panel data regression model, with estimation of fixed effect model. The findings of this study indicate that simultaneously the value of firms is influenced by investment decisions, financial decisions, and financial performance. While partially, financing decision has dominant influence from other variables, namely investment decision dan corporate performance. The conclusions of this study indicate that investment decisions and firm performance have a positive relationship to firm value, while financing decisions have a negative effect on firm value. In addition, the lag of firm value shows the long-term impact on the firm's value model.

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“…Moreover, the research of Berens and Cuny (1995) discusses the level of corporate debt as a way of identifying the trade-off theory. Jensen and Meckling (1976) describe the context in which agency theory begins.…”

Section: Awareness Of the Complexities Involved Capital Structure Decmentioning

confidence: 99%

Assessing accounting for citizenship: an empirical analysis of the corporate control and capital structure decisions

Segura

Abreu

Filho

2014

IJAUDIT

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Abstract:The accounting for citizenship pursues the citizen's best interest to protect their future financial well-being, in order to adjust the corporation control pressure through capital structure decisions that aim to promote sustainable practices and to improve the corporate governance. Studies of corporate governance identify that lenders now consider the cost of capital and the influence of the concentration of capital in the financial decisions. This article presents a synopsis of corporate control based on several authors and determinants of capital structure. The empirical part develops a longitudinal exploratory analysis from 356 corporations included from 2004 to 2009. The dependent variable used is debt (long-term, short-term, financial and total debt) and the independent variables are concentrated control and significant influence. Several control variables are used to avoid bias in the analysis. The results show that corporate control could change, in convergence and divergence, the capital structure decisions.

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The Capital Structure Puzzle Revisited

Cited by 72 publications

References 27 publications

Does the Source of Capital Affect Capital Structure?

Does the Source of Capital Affect Capital Structure?

Dynamic Model of Firm Value: Evidence from Indonesian Manufacturing Companies

Assessing accounting for citizenship: an empirical analysis of the corporate control and capital structure decisions

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