The Capital Structure Paradigm

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The Capital Structure Paradigm Evolution of Debt/Equity Choices

Zane Swanson, Bin Srinidhi, Ananth Seetharaman

Book Code: Q616

ISBN: 1-56720-616-6

ISBN-13: 978-1-56720-616-6

DOI:

256 pages, figures, tables, graphs

Praeger Publishers

Publication: 11/30/2003

List Price: $86.95 (UK Sterling Price: £49.95)

Availability: In Stock

Media Type: Hardcover

Trim Size: 6 1/8 x 9 1/4

Subjects:

Reviews:

Presents current thinking about how to determine the mix of financing sources for a mmodern entity.
—Business Horizons September/October 2004

Description: With a view toward providing the reader with a framework for examining debt/equity decisions, this book begins with a simple model of the debt/equity impact upon firm value. Utilizing the paradigm development of capital structure theory to identify the current research frontier of the factors affecting the firm debt/equity position, the authors also extrapolate from the current frontier to outline future opportunities for research and improvements in capital structure analysis. Each chapter begins with a discussion of a central tenet, moves on to a discussion of the theoretical research and empirical evidence pertaining to the tenet, and concludes with a summary of the implications of the paradigm shift for current and future research and practice. A chapter at the end of the book provides an analysis of some unanswered questions in the current frontier of knowledge that may be exploited for further research. One is the strength of signaling of capital structure changes on firm value. A second is a lack of specification for the set of capital structure simultaneous equations. A third emerging issue is the definition of the capital structure within behavioral finance thinking.

Table of Contents:

Preface
Introduction
Foundations--Is the Debt/Equity Decision Irrelevant?
Impact of Corporate Tax
The Modifying Impact of Personal Taxes on Investors
Bankruptcy Cost's Effect
Effect of Agency Costs
Signaling
Capital Structure as One of Many Simultaneously Determined Variables
Executive Survey Interview Information
Current State of Research Frontier and Opportunities
Summary and Conclusions
Appendices
Index

LC Card Number: 2003058006

LCC Class: HG4026

Dewey Class: 338


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