Capital structure lit review

In summary, there is little literature on the impact of executive compensation on capital structure in domestic literature, but mainly on the impact of capital structure on executive compensation, while existing domestic and foreign literatures are studying the relationship between executive compensation and capital structure.

research paper on capital structure pdf

National-level factors include GDP and inflation. Wang Wei and Zhao Jun [7] and Xiao Zuoping [8] analyze the relationship between capital structure and company characteristics. Huang Shaoan and Zhang Gang [6] compared the listed companies in the United States and found that the financing behavior of Chinese listed companies has obvious equity financing preferences, while relatively neglecting debt financing.

At the same time, these benefits of debt only happen when the company is running profitably and efficiently.

Determinants of capital structure literature review

Some of the points which determine the capital structure of the company are analysed has shown: tangibility, taxes, growth, profitability, volatility. Negative correlations may also exhibit a significant positive correlation and may also be in a U-shaped relationship. It follows that, the company which have less debt ratio earns more profit than the company which have more debt ratio. As concluded by Fama and French that profitability use lower debts and so have lesser gearing ratio. Ehrhard, M. Contra wise, an opposing relationship shown by Bradley et al. Journal of Finance, vol. Financial Review, 33, East China Economic Management, No.

Ehrhard and Bringham, stated that the business value as it may be defines in the present value of the expected cash flow, discounted of companies adequate average cost of capital. But one who practiced if ignored authorial cautions. Aggarwal R. Journal of Economic Perspectives.

journal articles on capital structure
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DETERMINANTS OF CAPITAL STRUCTURE: A LITERATURE ()