A comprehensive guide to making better capital structure and corporate financing decisions in today's dynamic business environment
Given the dramatic changes that have recently occurred in the economy, the topic of capital structure and corporate financing decisions is critically important. The fact is that firms need to constantly revisit their portfolio of debt, equity, and hybrid securities to finance assets, operations, and future growth.
Capital Structure and Corporate Financing Decisions provides an in-depth examination of critical capital structure topics, including discussions of basic capital structure components, key theories and practices, and practical application in an increasingly complex corporate world. Throughout, the book emphasizes how a sound capital structure simultaneously minimizes the firm's cost of capital and maximizes the value to shareholders.
- Offers a strategic focus that allows you to understand how financing decisions relates to a firm's overall corporate policy
- Consists of contributed chapters from both academics and experienced professionals, offering a variety of perspectives and a rich interplay of ideas
- Contains information from survey research describing actual financial practices of firms
This valuable resource takes a practical approach to capital structure by discussing why various theories make sense and how firms use them to solve problems and create wealth. In the wake of the recent financial crisis, the insights found here are essential to excelling in today's volatile business environment.Content:
Chapter 1 Capital Structure: An Overview (pages 1โ14): H. Kent Baker and Gerald S. Martin
Chapter 2 Factors Affecting Capital Structure Decisions (pages 15โ40): Wolfgang Bessler, Wolfgang Drobetz and Robin Kazemieh
Chapter 3 Capital Structure and Corporate Strategy (pages 41โ58): Maurizio La Rocca
Chapter 4 Capital Structure and Firm Risk (pages 59โ73): Valentin Dimitrov
Chapter 5 Capital Structure and Returns (pages 75โ92): Yaz Gulnur Muradoglu and Sheeja Sivaprasad
Chapter 6 Capital Structure and Compensation (pages 93โ109): Alan Victor Scott Douglas
Chapter 7 Worldwide Patterns in Capital Structure (pages 111โ126): Carmen Cotei and Joseph Farhat
Chapter 8 Capital Structure Theories and Empirical Tests: An Overview (pages 127โ149): Stein Frydenberg
Chapter 9 Capital Structure Irrelevance: The Modigliani?Miller Model (pages 151โ169): Sergei V. Cheremushkin
Chapter 10 Trade?Off, Pecking Order, Signaling, and Market Timing Models (pages 171โ189): Anton Miglo
Chapter 11 Estimating Capital Costs: Practical Implementation of Theory's Insights (pages 191โ210): Robert M. Conroy and Robert S. Harris
Chapter 12 Economic, Regulatory, and Industry Effects on Capital Structure (pages 211โ228): Paroma Sanyal
Chapter 13 Survey Evidence on Financing Decisions and Cost of Capital (pages 229โ248): Franck Bancel and Usha R. Mittoo
Chapter 14 Survey Evidence on Capital Structure: Non?U.S. Evidence (pages 249โ260): Abe De Jong and Patrick Verwijmeren
Chapter 15 The Roles of Financial Intermediaries in Raising Capital (pages 261โ280): Neal Galpin and Heungju Park
Chapter 16 Bank Relationships and Collateralization (pages 281โ297): Aron A. Gottesman and Gordon S. Roberts
Chapter 17 Rating Agencies and Credit Insurance (pages 299โ317): John Patrick Hunt
Chapter 18 Secured Financing (pages 319โ334): Hugh Marble
Chapter 19 Sale and Leasebacks (pages 335โ350): Kyle S. Wells
Chapter 20 Financial Distress and Bankruptcy (pages 351โ370): Kimberly J. Cornaggia
Chapter 21 Fiduciary Responsibility and Financial Distress (pages 371โ386): Remus D. Valsan and Moin A. Yahya
Chapter 22 The Lease Versus Buy Decision (pages 387โ400): Sris Chatterjee and An Yan
Chapter 23 Private Investment in Public Equity (pages 401โ417): William K. Sjostrom
Chapter 24 Financing Corporate Mergers and Acquisitions (pages 419โ444): Wolfgang Bessler, Wolfgang Drobetz and Jan Zimmermann