Search results
Modigliani and Miller advocate capital structure irrelevancy theory, which suggests that the valuation of a firm is irrelevant to the capital structure of a company [4]. Moreover, the...
Capital structure is understood as the relationship between equity and debt capital of the company. Does capital structure affect the company’s main settings, such as the cost of capital, profit, value of the company, and the others, and, if it affects, how?
28 sty 2017 · This review examines the role of different capital structure theories in decision making regarding the debt preferences.
One of the two main theories of capital cost and capital structure is the theory of Nobel Prize winners Modigliani and Miller (1958, 1963, 1966). In this chapter, we describe the main results of this theory. Under the capital structure, one understands the relationship between equity and debt capital of the company.
26 sty 2023 · The purpose of this review is to analyze all existing theories of the capital structure (with their advantages and disadvantages) in order to understand all aspects of the problem and make correct management decisions in practice.
Myers-Majluf (1984): managers acting in the interest of shareholders. — Informational asymmetry corporate insiders (managers) and outside in-vestors). — Managers would “want” to issue equity when overvalued; are reluctant to issue equity when undervalued.
5 gru 2020 · Capital structure is understood as the relationship between equity and debt capital of the company. Does capital structure affect the company’s main settings, such as the cost of capital, profit, value of the company, and the others, and, if it affects, how?
