The Experts below are selected from a list of 172455 Experts worldwide ranked by ideXlab platform
Gabrielle Wanzenried - One of the best experts on this subject based on the ideXlab platform.
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Capital Structure Inertia and Product Market Competition
2013Co-Authors: André F. Gygax, Gabrielle WanzenriedAbstract:Based on a sample of US non-financial and non-utility firms over fiscal years from 1990 to 2010, this paper empirically examines how Capital Structure inertia differs across industries and to what extend such differences can be explained by product market competition. We find that firms in more competitive industries tend to be more inert with their Capital Structure decisions. This result could be explained by the disciplinary effect of debt, which serves as a substitute to product market competition. When product market competition is low, managers are more active with regard to Capital Structure decisions, especially debt use to constrain the free cash flow problem. In addition, we explore the explanatory power of transaction costs, which is a common explanation for Capital Structure inertia. Our results show that large firms are more inert than small firms. This provides evidence that transaction costs, at least, do not play a critical role in explaining Capital Structure inertia.
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Capital Structure Inertia and CEO Compensation
2003Co-Authors: Gabrielle WanzenriedAbstract:There is strong empirical evidence that firms do not always adjust their Capital Structure according to established Capital Structure theories. Rather, they follow a passive strategy such that Capital Structure changes are mainly driven by their stock returns. This paper investigates to what extent this behavioral inertia can be explained by the Structure of executive compensation. Our data comprise US firms in the manufacturing industries over the years 1992 to 2000. We estimate a dynamic panel data model and find evidence for the hypothesis that stronger incentives schemes for CEOs lead to less Capital Structure inertia.
Muhammad Istan - One of the best experts on this subject based on the ideXlab platform.
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Political Patronage on Capital Structure in Indonesia
GATR Journal of Finance and Banking Review, 2019Co-Authors: Muhammad IstanAbstract:Objective – The purpose of this research is to test the theory of Capital Structure by determining whether the relationship is affected by Political Patronage. The study will examine political support, Capital Structure and financial performance of the company. Methodology/Technique – The data in this research is in the form of financial ratios displayed in the financial report of each company listed from 2010 to 2016. The sample was selected using purposive sampling with as many as 70 companies indicated to have political support. The data was analysed using regression analysis. Findings – The results show that Political Patronage has an influence on Capital Structure and political Patronage has a weak effect on financial performance. Type of Paper: Empirical Keywords: Political Patronage; Capital Structure; Financial Performance. Reference to this paper should be made as follows: Istan, M; Kamaludin. 2019. Political Patronage on Capital Structure in Indonesia, J. Fin. Bank. Review 4 (3): 89 – 97 https://doi.org/10.35609/jfbr.2019.4.3(2) JEL Classification: G30, G32, G39.
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Political Patronage on Capital Structure
2018Co-Authors: Muhammad IstanAbstract:The background of this research is to test the theory Capital Structure by relationship is affected by Political Patronage. The problem proposed is how political support, Capital Structure and financial performance of the company. The data in this research was in the form of financial ratios displayed in the financial report of each company listed in 20102016. The technique of sample selection used purposive sampling with as many as 70 companies indicated to have political support. The technique of analysis is used regression analysis. The result shows that Political Patronage is giving influence on Capital stucture and political Patronage have a weak effect financial performance . Keywords: Political patronage, Capital Structure, financial performance
Malcolm Baker - One of the best experts on this subject based on the ideXlab platform.
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Market timing and Capital Structure
Journal of Finance, 2002Co-Authors: Malcolm Baker, Jeffrey WurglerAbstract:It is well known that firms are more likely to issue equity when their market values are high, relative to book and past market values, and to repurchase equity when their market values are low. We document that the resulting effects on Capital Structure are very persistent. As a consequence, current Capital Structure is strongly related to past market values. The results suggest the theory that Capital Structure is the cumulative outcome of past attempts to time the equity market.
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Market Timing and Capital Structure
2001Co-Authors: Jeffrey Wurgler, Malcolm BakerAbstract:It is well known that firms tend to raise equity when their market values are high relative to book and past market values. We document that the resulting effects on Capital Structure are very persistent. As a consequence, current Capital Structure is strongly related to past market valuations. The results are difficult to explain within traditional theories of Capital Structure and suggest that Capital Structure is the cumulative outcome of past attempts to time the equity market.
Jeffrey Wurgler - One of the best experts on this subject based on the ideXlab platform.
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Market timing and Capital Structure
Journal of Finance, 2002Co-Authors: Malcolm Baker, Jeffrey WurglerAbstract:It is well known that firms are more likely to issue equity when their market values are high, relative to book and past market values, and to repurchase equity when their market values are low. We document that the resulting effects on Capital Structure are very persistent. As a consequence, current Capital Structure is strongly related to past market values. The results suggest the theory that Capital Structure is the cumulative outcome of past attempts to time the equity market.
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Market Timing and Capital Structure
2001Co-Authors: Jeffrey Wurgler, Malcolm BakerAbstract:It is well known that firms tend to raise equity when their market values are high relative to book and past market values. We document that the resulting effects on Capital Structure are very persistent. As a consequence, current Capital Structure is strongly related to past market valuations. The results are difficult to explain within traditional theories of Capital Structure and suggest that Capital Structure is the cumulative outcome of past attempts to time the equity market.
Chen Liu-qin - One of the best experts on this subject based on the ideXlab platform.
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Review of Western Theory of Post Capital Structure
Journal of Tianjin University of Commerce, 2010Co-Authors: Chen Liu-qinAbstract:The paper reviews Western theory of post Capital Structure such as control right theory,industrial organization theory of Capital Structure and market timing theory,and finds that,although post Capital Structure theory is a challenge to the new Capital Structure theory in model,the theoretical challenge is in want of empirical evidence.Post Capital Structure theory will be the focus of study in the future.
