1,102
Views
10
CrossRef citations to date
0
Altmetric
Original Articles

Examining the theory of capital structure: signal factor hypothesis

, &

References

  • Allen, D. E. and Mizuno, H. (1989) The determinants of corporate capital structure: Japanese evidence, Applied Economics, 21, 569–85.
  • Baxter, N. (1967) Leverage, risk of ruin and the cost of capital, Journal of Finance, 22, 395–403.
  • Becker, R., Enders, W. and Lee, J. (2004) A general test for time dependence in parameters, Journal of Applied Econometrics, 19, 899–906.
  • Becker, R., Enders, W. and Lee, J. (2006) A stationary test in the presence of an unknown number of smooth breaks, Journal of Time Series Analysis, 27, 381–409.
  • Bontempi, M. E. and Golinelli, R. (2001) Is financial leverage mean-reverting? Unit root tests and corporate financing models, Working Papers 422, Dipartimento Scienze Economiche, Universita' di Bologna, Italy.
  • Camarero, M., Carrion-Silvestre, J. L. and Tamarit, C. (2006) Testing for hysteresis in unemployment in OECD Countries: new evidence using stationarity panel tests with breaks, Oxford Bulletin of Economics and Statistics, 68, 167–82.
  • Carrion-i-Silvestre, J. L., Del Barrio-Castro, T. and López-Bazo, E. (2005) Breaking the panels: an application to the GDP per capita, Econometrics Journal, 8, 159–75.
  • Chang, T. and Ranjbar, O. (2012) Can the BRICS countries catch up with the US? When sharp drifts and smooth breaks wed, Working paper, Department of Finance, Feng Chia University, Taiwan, ROC.
  • Chou, S. R., Yang, J. A. and Lee, C. H. (2011) Determinants of capital structure in Taiwan 50: a structure equation modeling approach, Sun Yat-Sen Management Review, 19, 225–77.
  • Copeland, T. E., Weston, J. F. and Shastri, K. (2005) Financial Theory and Corporate Policy, 4th edn, Person Addison Wesley, Reading, MA.
  • DeAngelo, H. and Masulis, R. W. (1980) Optimal capital structure under corporate and personal taxation, Journal of Financial Economics, 8, 3–29.
  • Enders, W. and Lee, J. (2009) The flexible Fourier form and testing for unit roots: an example of the term structure of interest rates, Working Paper, Department of Economics, Finance and Legal Studies, University of Alabama, Tuscaloosa, AL.
  • Enders, W. and Lee, J. (2012) A unit root test using a Fourier series to approximate smooth breaks, Oxford Bulletin of Economics and Statistics, 74, 574–99.
  • Fama, E. F. and French, K. R. (2005) Financing decisions: who Issues Stock?, Journal of Financial Economics, 76, 549–82.
  • Hadri, K. (2000) Testing for stationary in heterogeneous panel data, Econometrics Journal, 3, 148–61.
  • Jensen, M. C. (1986) Agency costs of free cash flow, corporate finance, and takeovers, American Economic Review, 76, 323–29.
  • Jensen, M. C. and Meckling, W. H. (1976) Theory of the firm: managerial behavior, agency costs and ownership structure, Journal of Financial Economics, 3, 303–60.
  • Kurozumi, E. (2005) Detection of structural change in the long-run persistence in a univariate time series, Oxford Bulletin of Economics and Statistics, 67, 181–206.
  • Kwiatkowski, D., Phillips, P. C. B., Schmidt, P. J. et al. (1992) Testing the null hypothesis of stationarity against the alternative of a unit root: how sure are we that economic time series have a unit root, Journal of Econometrics, 54, 159–78.
  • Leybourne, S., Newbold, P. and Vougas, D. (1998) Unit roots and smooth transitions, Journal of Time Series Analysis, 19, 83–97.
  • López-Iturriaga, F. J. and Rodríguez-Sanz, J. A. (2008) Capital structure and institutional setting: a decompositional and international analysis, Applied Economics, 40, 1851–64.
  • Modigliani, F. and Miller, M. H. (1958) The cost of capital, corporation finance, and the theory of investment, American Economic Review, 48, 261–97.
  • Modigliani, F. and Miller, M. H. (1963) Corporate income taxes and the cost of capital: a correction, American Economic Review, 53, 433–43.
  • Myers, S. C. (1977) The determinants of corporate borrowing, Journal of Financial Economics, 5, 147–75.
  • Myers, S. C. (1984) The capital structure puzzle, Journal of Finance, 39, 1–33.
  • Myers, S. C. and Majluf, N. S. (1984) Corporate financing and investment decisions when firms have information that investors do not have, Journal of Financial Economics, 13, 187–221.
  • Noulas, A. and Genimakis, G. (2011) The determinants of capital structure choice: evidence from Greek listed companies, Applied Financial Economics, 21, 2011.
  • Nunkoo, P. K. and Boateng, A. (2010) The empirical determinants of target capital structure and adjustment to long-run target: evidence from Canadian firms, Applied Economics Letters, 17, 2010.
  • Peel, D. A., Peel, M. J. and Venetis, I. A. (2004) Further empirical analysis of the time series properties of financial ratios based on a panel data approach, Applied Financial Economics, 14, 155–63.
  • Robichek, A. A. and Myers, S. C. (1966) Problems in the theory of optimal capital structure, Journal of Financial and Quantitative Analysis, 1, 1–35.
  • Ross, S. A. (1977) The determination of financial structure: the incentive-signaling approach, Bell Journal of Economics, 8, 23–40.
  • Scott, J. (1976) A theory of optimal capital structure, Bell Journal of Economics, 7, 33–54.
  • Stulz, R. M. (1990) Managerial discretion and optimal financing policies, Journal of Financial Economics, 26, 3–28.
  • Titman, S. and Wessels, R. (1988) The determinants of capital structure choice, Journal of Finance, 43, 1–19.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.