Author: Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Investment Decisions, Managerial Discretion, and Optimal Capital Structure with Convertible Debt
Author: Investment Decisions, Managerial Discretion, and Optimal Capital Structure with Learning-Curve Technology
Author: Investment Decisions, Managerial Discretion, and Optimal Capital Structure with Jump-Diffusion Process
Author: Investment Opportunities, Managerial Discretion, and the Security Issue Decision
Author: Kooyul JungPublisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 48
Book Description
Informational Asymmetry between Managers and Investors in the Optimal Capital Structure Decision
Author: Matthias BankPublisher:
ISBN:
Category :
Languages : en
Pages : 55
Book Description
In this article, we consider the impact of asymmetric information between managers and investors on the optimal capital structure decision. This is done within a continuous-time framework, where the relevant state variable is given by the EBIT value of the firm; an approach taken by Goldstein et al. (2001), Hackbarth et al. (2003), Dangl amp; Zechner (2004) amongst others. Our setup differs in that we assume the EBIT to follow an Arithmetic Brownian motion, i.e. it can assume negative values. More importantly, we extend this framework in two directions: (i) We introduce a separate management claim. (ii) We introduce asymmetric information between managers and investors by assuming that claimants receive noisy signals, which they process according to rational expectation principles. Our results show, that managers always try to avoid debt, and that their optimal bankruptcy threshold is always lower, than the threshold set by equity holders. The introduction of asymmetric information changes the optimality conditions, and consequently the capital structure decision. It is shown, that the informational asymmetry can substantially lower the optimal leverage ratio, even without assuming that managers are entrenched.
Capital Structure and Corporate Financing Decisions
Author: H. Kent BakerPublisher: John Wiley & Sons
ISBN: 0470569522
Category : Business & Economics
Languages : en
Pages : 516
Book Description
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.
Convertible Securities and Capital Structure Determinants
Author: Stuart Martin EssigPublisher:
ISBN:
Category : Convertible securities
Languages : en
Pages : 278
Book Description
Handbook Of Financial Econometrics, Mathematics, Statistics, And Machine Learning (In 4 Volumes)
Author: Cheng Few LeePublisher: World Scientific
ISBN: 9811202400
Category : Business & Economics
Languages : en
Pages : 5053
Book Description
This four-volume handbook covers important concepts and tools used in the fields of financial econometrics, mathematics, statistics, and machine learning. Econometric methods have been applied in asset pricing, corporate finance, international finance, options and futures, risk management, and in stress testing for financial institutions. This handbook discusses a variety of econometric methods, including single equation multiple regression, simultaneous equation regression, and panel data analysis, among others. It also covers statistical distributions, such as the binomial and log normal distributions, in light of their applications to portfolio theory and asset management in addition to their use in research regarding options and futures contracts.In both theory and methodology, we need to rely upon mathematics, which includes linear algebra, geometry, differential equations, Stochastic differential equation (Ito calculus), optimization, constrained optimization, and others. These forms of mathematics have been used to derive capital market line, security market line (capital asset pricing model), option pricing model, portfolio analysis, and others.In recent times, an increased importance has been given to computer technology in financial research. Different computer languages and programming techniques are important tools for empirical research in finance. Hence, simulation, machine learning, big data, and financial payments are explored in this handbook.Led by Distinguished Professor Cheng Few Lee from Rutgers University, this multi-volume work integrates theoretical, methodological, and practical issues based on his years of academic and industry experience.
Convertible Securities: A Complete Guide to Investment and Corporate Financing Strategies
Author: Tracy V. MaitlandPublisher: McGraw Hill Professional
ISBN: 1260462919
Category : Business & Economics
Languages : en
Pages : 559
Book Description
The definitive guide to reduced-risk investing in the $600+ billion global convertible securities market Authored by professionals at Advent Capital Management―one of the world’s leaders on convertible securities―Convertible Securities describes the mechanics and behavior of convertible securities in comprehensive yet easy-to-understand language. Written for discerning investors, including corporate CIOs and CFOs, financial investment academics, and financial advisors, Convertible Securities provides quantitative insights and theories presented in a methodical and understandable format using recent and relevant examples. It explains the mathematical underpinnings of convertible securities and offers thorough analyses of convertibles from every angle, including those of various types of investors and issuers and numerous related disciplines (tax, performance analysis, accounting, risk management, and others). Topics include: Unique and Valuable Features in Convertible Bonds and Convertible Preferred Stocks How Savvy Investors Use Convertibles in their Portfolios How CFOs Optimize Corporate Capital Structures with Convertibles Valuation & Quantitative Properties of Convertibles Psychology and Investing in Convertibles Asset Allocation Models that Weigh the Advantages of Convertibles Practical Considerations for Convertible Investors―and much more! A high value-added asset class with a unique record of achieving equity-like returns with less risk than outright investment in common stocks, convertible securities are perfect for times when markets are at their most unpredictable. Convertible Securities offers everything you need to make them work for you, now and in the future.
Intermediate Financial Theory
Author: Jean-Pierre DanthinePublisher: Elsevier
ISBN: 0080509029
Category : Business & Economics
Languages : en
Pages : 391
Book Description
The second edition of this authoritative textbook continues the tradition of providing clear and concise descriptions of the new and classic concepts in financial theory. The authors keep the theory accessible by requiring very little mathematical background. First edition published by Prentice-Hall in 2001- ISBN 0130174467.The second edition includes new structure emphasizing the distinction between the equilibrium and the arbitrage perspectives on valuation and pricing, as well as a new chapter on asset management for the long term investor."This book does admirably what it sets out to do - provide a bridge between MBA-level finance texts and PhD-level texts....many books claim to require little prior mathematical training, but this one actually does so. This book may be a good one for Ph.D students outside finance who need some basic training in financial theory or for those looking for a more user-friendly introduction to advanced theory. The exercises are very good." --Ian Gow, Student, Graduate School of Business, Stanford University - Completely updated edition of classic textbook that fills a gap between MBA level texts and PHD level texts - Focuses on clear explanations of key concepts and requires limited mathematical prerequisites - Updates includes new structure emphasizing the distinction between the equilibrium and the arbitrage perspectives on valuation and pricing, as well as a new chapter on asset management for the long term investor