Optimal capital structure: a trade-off model and its empirical testing

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dc.contributorUniversitat de Lleida. Departament d'Administració d'Empreses i Gestió Econòmica dels Recursos Naturals
dc.contributor.authorSalvador Figueras, Manuel
dc.contributor.authorVendrell Vilanova, Anna
dc.date.accessioned2014-01-31T12:28:46Z
dc.date.available2014-01-31T12:28:46Z
dc.date.issued2012
dc.description.abstractIn the present research we have set forth a new, simple, Trade-Off model that would allow us to calculate how much debt and, by default, how much equity a company should have, using easily available information and calculating the cost of debt dynamically on the basis of the effect that the capital structure of the company has on the risk of bankruptcy; in an attempt to answer this question. The proposed model has been applied to the companies that make up the Dow Jones Industrial Average (DJIA) in 2007. We have used consolidated financial data from 1996 to 2006, published by Bloomberg. We have used simplex optimization method to find the debt level that maximizes firm value. Then, we compare the estimated debt with real debt of companies using statistical nonparametric Mann-Whitney. The results indicate that 63% of companies do not show a statistically significant difference between the real and the estimated debt.ca_ES
dc.identifier.dlL-427-2009
dc.identifier.idgrec020429
dc.identifier.issn2013-4916
dc.identifier.urihttp://hdl.handle.net/10459.1/46988
dc.language.isoengca_ES
dc.publisherEdicions de la Universitat de Lleidaca_ES
dc.relation.isformatofReproducció del document publicat a: http://www.aegern.udl.cat/export/sites/Aegern/docs/papers/WP_6_2013.pdfca_ES
dc.relation.ispartofNew trends in accounting and management, 2012, núm. 6, p. 1-36ca_ES
dc.rights(c) Edicions de la Universitat de Lleida, 2012ca_ES
dc.rights(c) AEGERN, 2012
dc.rights.accessRightsinfo:eu-repo/semantics/openAccessca_ES
dc.subjectBankruptcy costca_ES
dc.subjectCapital structureca_ES
dc.subjectTrade-offca_ES
dc.subjectDynamic analysisca_ES
dc.subject.otherEmpreses -- Financesca_ES
dc.subject.otherDeute empresarialca_ES
dc.subject.otherCapital
dc.subject.otherCapital de risc
dc.titleOptimal capital structure: a trade-off model and its empirical testingca_ES
dc.typeworkingPaperca_ES
dc.type.versionpublishedVersionca_ES
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