Capital Structure Under Heterogeneous Beliefs

2010 ◽  
Author(s):  
Hae Won Jung ◽  
Ajay Subramanian
Keyword(s):  
Capital Structure ◽  
Heterogeneous Beliefs

Capital Structure and Security Issuance Under Heterogeneous Beliefs

2010 ◽  
Author(s):  
Thomas J. Chemmanur ◽  
Jean-Sebastien Michel ◽  
Debarshi K. Nandy ◽  
An Yan
Keyword(s):  
Capital Structure ◽  
Heterogeneous Beliefs ◽  
Security Issuance

CORPORATE FINANCING UNDER HETEROGENEOUS BELIEFS

2017 ◽  
Vol 12 (04) ◽  
pp. 1750019
Author(s):  
WEINING NIU
Keyword(s):  
Numerical Simulation ◽  
Capital Structure ◽  
Stock Price ◽  
Equity Capital ◽  
Heterogeneous Beliefs ◽  
Price Effect ◽  
Corporate Financing ◽  
Optimal Capital Structure ◽  
Price Effects ◽  
Optimal Capital

The paper models firm’s optimal capital structure and stock price effects from the perspective of expectation equilibrium when manager and outside investors have heterogeneous prior and posterior beliefs on firm’s future cash flow. I find that the more optimistic (pessimistic) of outside investors and the more dispersion of beliefs between manager and outside investors, the higher (lower) the issuing price of stocks, the higher (lower) the issuing amount, hence the higher (lower) the proportion of equity capital in capital structure, and a higher positive (negative) stock price effect after security issuance. The numerical simulation also verifies the findings to some extent.

Capital Structure under Heterogeneous Beliefs*

2013 ◽  
Vol 18 (5) ◽  
pp. 1617-1681 ◽  
Author(s):  
Hae Won (Henny) Jung ◽  
Ajay Subramanian
Keyword(s):  
Capital Structure ◽  
Heterogeneous Beliefs

Analysis of Factors Affecting Capital Structure in Food and Beverage Manufacturing Company

2018 ◽  
Vol 1 (2) ◽  
pp. 1-14
Author(s):  
Nur Hajja Aini ◽  
St Habibah
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Significant Influence ◽  
Fixed Effects ◽  
Random Effect Model ◽  
Manufacturing Companies ◽  
Business Risk ◽  
Growth Opportunities ◽  
Food And Beverage ◽  
The Capital Structure

The purpose of this research to analyze the influence of firm size, liquidity, growth opportunities, tangibility asset, and business risk to the capital structure of listed food and beverage manufacturing companies in Indonesia and Vietnam Stock Exchange from 2010 to 2016. The result shows that the fixed effects model should be appropriate for this study as compared to the random effect model. Capital structure significantly differences between the two countries. Firm size has a positive but insignificant influence on the capital structure in Indonesia, whereas it has a positive and a significant influence on the capital structure in Vietnam. Liquidity has a negative and significant influence on the capital structure both in Indonesia and Vietnam. Growth opportunities have a negative but insignificant influence on the capital structure both in Indonesia and Vietnam. Asset tangibility has a positive but insignificant influence on the capital structure in Indonesia, but it has the negative but insignificant influence on the capital structure in Vietnam. Ultimately, the business risk has a negative and significant influence on the capital structure in Indonesia but has a positive and insignificant influence on the capital structure in Vietnam.

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