Capital structure decisions: The views of investment advisors

A study of Financing Decisions and Capital Structure in Real Investment

In real investment, there is a relationship between external financing and abnormal stock returns. This study predicts a negative correlation between external financing and stock returns. The dependent variable of the research is stock returns and the independent variables are net financing and equity ratio. Also, control variables of the research includes assets growth, company’s size and comp...

Optimizing Capital Investment Decisions at Intel Corporation

Capital Structure Decisions

The present study is an attempt to find the relationship between capital structure and value of firm and to find the significance of differences in capital structures of different companies – inter and intra industry. Two hypothesis were framed and tested. bivariate correlation technique was used to find the nature of relationship between (i) capital structure and cost of capital, (ii) cost of ...

Capital Structure Decisions in the Biopharmaceutical Industry

In this paper we deal with the capital structure problem in the pharmaceutical industry that has recently changed its business model because of the biotechnology advent. We propose a set of hypotheses that explains the drivers of capital structure decision in this industry and then we test their validity over a sample of 50 biopharmaceutical firms. The obtained results show that pecking order t...

Capital Structure and Product Market Behavior: An Examination of Plant Exit and Investment Decisions

We examine whether sharp debt increases through leveraged buyouts and recapitalizations interact with market structure to influence plant closing and investment decisions of recapitalizing firms and their rivals. We take into account the fact that recapitalizations and investment decisions are both endogenous and may be simultaneously influenced by the same exogenous events. Following their rec...