Published January 15, 1992 by Longman Higher Education.
Companies usually have a choice between debt financing or equity .
Companies usually have a choice between debt financing or equity financing. There are some advantages to equity financing over debt financing. The debt to equity ratio shows how much of a company's financing is proportionately provided by debt and equity. The main advantage of equity financing is that there is no obligation to repay the money acquired through it.
The debt/equity choice.
Masulis, . 1988, The Debt-Equity Choice, Institutional Investor Series in Finance, Ballinger Press. 11. Masulis, . 1988, State-Preference Theory, Chapter 5 of Financial Theory and Corporate Policy, by Copeland, T. and Weston, . 10. 1987, Changes in Ownership Structure: Conversions of Mutual Savings and Loans to Stock Charter, Journal of Financial Economics 18:1, 29-60.
The Debt-equity Choice . Article in Journal of Financial and Quantitative Analysis 36(01):1-24 · March 2001 with 488 Reads. DOI: 1. 307/2676195 · Source: RePEc. We find that firms are most likely to increase debt and repurchase equity when they have less debt than is predicted by a cross-sectional leverage regression. In addition, the likelihood of issuing debt rises with the firms' past profitability.
Debt means borrowing money, and debt financing mean borrowing money without giving away your ownership rights.
The Debt/Equity Choice book. See a Problem? We’d love your help. Details (if other): Cancel. Thanks for telling us about the problem. The Debt/Equity Choice. by. Ronald W. Masulis.
The debt-equity choice, Institutional Investor Series in Finance, Ballinger Press. McConnel, J. J. and H. Servas (1995), Equity Ownership and the two Faces of Debt, Journal of Financial Economics 39, pp. 131 – 157. Messbacher, . 2004. Miller, M. H. (1977) Debt and Taxes Journal of Finance, Vol. 32, pp. 261 – 275. Modigliani, F. (1980). Introduction in a Abel (ed), The Collected Papers of Franco Modigliani, Vol. 3, pp. xi – xix. Cambridge, Massachusetts.
The Debt-Equity Choice - Volume 36 Issue 1 - Armen Hovakimian, Tim . and Korwar, . .Myers, S. and Majluf, .Corporate Financing and Investment Decisions when Firms Have Information that Investors Do Not Have.
The Debt-Equity Choice - Volume 36 Issue 1 - Armen Hovakimian, Tim Opler, Sheridan Titman.Seasoned Equity6 Offerings: An Empirical Investigation. Journal of Financial Economics, 13 (1984), 187–221. Pagan, A. Econometric Issues in the Analysis of Regressions with Generated Regressors. Rajan, R. and Zingales, .
series of fundamental variables (described below) are included in the model The heterogeneity of the debt burden among sectors owing to their particular operations is confirmed by the above-mentioned studies (MacKay.
series of fundamental variables (described below) are included in the model. Depending on the sample studied, the tested hypothesis and set of explanatory factors, authors reach various conclusions that range from partial compatibility with the theories to their complete contradiction. In other words, a company can forego debt financing if a non-debt tax shield provides more benefit to the company. The heterogeneity of the debt burden among sectors owing to their particular operations is confirmed by the above-mentioned studies (MacKay and Phillips, 2005).