Capital Structure and Corporate Financing Decisions: Theory, Evidence, and Practice

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JWBT436-fm JWBT436-Baker February 11, 2011 7:46 Printer Name: Hamilton

Contents

Acknowledgments ix

1 Capital Structure: An Overview 1

H. Kent Baker and Gerald S. Martin

PART I The Elements of Capital Structure 15

2 Factors Affecting Capital Structure Decisions 17

Wolfgang Bessler, Wolfgang Drobetz, and Robin Kazemieh

3 Capital Structure and Corporate Strategy 41

Maurizio La Rocca

4 Capital Structure and Firm Risk 59

Valentin Dimitrov

5 Capital Structure and Returns 75

Yaz Gu



lnur Murado

˘

glu and Sheeja Sivaprasad

6 Capital Structure and Compensation 93

Alan Victor Scott Douglas

7 Worldwide Patterns in Capital Structure 111

Carmen Cotei and Joseph Farhat

PART II Capital Structure Choice 127

8 Capital Structure Theories and Empirical Tests:

An Overview 129

Stein Frydenberg

9 Capital Structure Irrelevance:

The Modigliani-Miller Model 151

Sergei V. Cheremushkin

v

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JWBT436-fm JWBT436-Baker February 11, 2011 7:46 Printer Name: Hamilton

vi Contents

10 Trade-Off, Pecking Order, Signaling, and Market

Timing Models 171

Anton Miglo

11 Estimating Capital Costs: Practical Implementation

of Theory’s Insights 191

Robert M. Conroy and Robert S. Harris

12 Economic, Regulatory, and Industry Effects

on Capital Structure 211

Paroma Sanyal

13 Survey Evidence on Financing Decisions

and Cost of Capital 229

Franck Bancel and Usha R. Mittoo

14 Survey Evidence on Capital Structure:

Non-U.S. Evidence 249

Abe de Jong and Patrick Verwijmeren

PART III Raising Capital 261

15 The Roles of Financial Intermediaries ...