WebMar 9, 2024 · This theory suggests that there is a trade-off between the benefits of debt and the costs of debt (Titman & Wessels, 1988). Companies must weigh the benefits and costs of debt in order to make an optimal capital structure decision. Another popular theory is the pecking order theory (Frank & Goyal, 2003). This theory suggests that companies will ... Webrecently, however, Titman and Wessels (1988), using a latent variables approach, have found only mixed evidence for the role of the factors predicted by the static trade-off theory. …

Determinants of capital structure choice: A structural equation ...

WebMar 11, 2005 · Moreover, consistent with Titman (1984) and Titman and Wessels (1988), only the proportion of purchases from suppliers in industries producing durable products (where specific investments are likely to be more important) drives this result. We also examine whether the supplier's leverage ratios are affected by the presence of principal … Webproduce relatively unique products (see Titman and Wessels (1988)). Simi-larly, since selling expenses proxy for product specialization and high over-head, the agency hypothesis and the financial distress hypothesis also pro-vide conflicting predictions about the effect of this variable on the likelihood of a firm undertaking an LBO. chairperson of ncst

Impact of Financial Leverage, Size and Assets Structure on …

WebApr 30, 2012 · This paper surveys capital structure theories based on agency costs, asymmetric information, product/input market interactions, and corporate control considerations (but excluding tax-based theories). For each type of model, a brief overview of the papers surveyed and their relation to each other is provided. The central papers are … WebTitman received financial support from the Batterymarch fellowship program and from the UCLA Foundation for Research in Financial Markets and Institutions. Wessels received … http://bogan.dyson.cornell.edu/doc/research/rest_a_00223(6).pdf chairperson of ncpcr 2022