Theoretical Conceptions of Optimal Capital Structure
نویسندگان
چکیده
منابع مشابه
The Optimal Capital Structure of Depository Institutions
We derive here a fundamental model for the capital structure of depository institutions. The derivation centres on the basic Modigliani-Miller methodology, but instead of using a constant EBIT, as classically done for corporate firms, it implements a variable one, which hinges on the interest earnings from the asset-based loans made to the borrower. Following this, the effect of risk and credit...
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Capital structure is the mixture of debt and equity financing. Its choice and determinants related to many different factors. This thesis firstly present several traditional theories discussed on capital structure, such as trade-off theory, agency cost theory and theory of pecking-order. Then the paper concluded seven determined factors from practical aspects and discussed on the correlations a...
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One should recognise that, in contrast to a corporate firm, there is an underlying problem in assessing the capital structure of a bank. This problem rests mainly on the lack of clarity on how one could define, let alone determine, the location of the optimal. The reason for this is rooted in the differences in the ways the two types of organisations operate. For instance, while a corporate fir...
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ژورنال
عنوان ژورنال: Journal of Business and Economics
سال: 2014
ISSN: 2155-7950
DOI: 10.15341/jbe(2155-7950)/12.05.2014/005