| 1. |
|
|
| 2. |
- Lindblom, Ted, 1956, et al.
(författare)
-
Capital structure choices
- 2011
-
Ingår i: International Journal of Banking, Accounting and Finance. - 1755-3830. ; 3:1, s. 4-30
-
Tidskriftsartikel (refereegranskat)abstract
- Corporate finance theory provides a number of competing hypotheses for explaining the capital structure choice of firms. The major ones are the ‘trade-off’ theory, which hypothesises an optimal combination of debt and equity capital, and the ‘pecking-order’ theory, which suggests a ranking order between different types of capital making a firm’s capital structure an aggregated result of successive financial decisions. Previous studies find evidence both supporting and contradicting the two theories. We examine the role and importance of different firm characteristics as well as to what extent managers in Swedish firms make capital structure choices in accordance with the theories and are affected by concepts like optimal capital structure, financial hierarchy, windows of opportunity, signalling, asymmetric information and flexibility. Our conclusion is that capital structure choices are built on a balancing notion suggesting a revised trade-off theory or alternatively an extended pecking order theory also incorporating agency costs and signalling.
|
|
| 3. |
- Lindblom, Ted, 1956, et al.
(författare)
-
Capital Structure Choices in Swedish firms
- 2009
-
Ingår i: the 44th Euro Working Group on Financial Modeling conference in San Jose, Costa Rica, May 4-6, 2009 and December 5-8, 2009.
-
Konferensbidrag (refereegranskat)abstract
- Corporate finance theory provides a number of competing hypotheses for explaining the capital structure choice of firms. The two major ones are the ‗tradeoff‘ theory, which hypothesizes that the management of a firm seeks to achieve an optimal combination of debt and equity capital, and the ‗pecking-order‘ theory, which suggests that there is a ranking order between different types of capital making a firm‘s capital structure an aggregated result of intermittent capital structure decisions. Most empirical studies find evidence both supporting and contradicting the two theories. In this paper we present results from a comprehensive survey of capital structure choices in practice. We examine the role and importance of different firm characteristics as well as to what extent managers in Swedish firms make financial decisions in accordance with capital structure theories and are affected by concepts like optimal capital structure, financial hierarchy, windows of opportunity, signalling, asymmetric information and flexibility.
|
|
| 4. |
|
|
| 5. |
- Lindblom, Ted, 1956, et al.
(författare)
-
Financial structure decisions in large business firms
- 2010
-
Ingår i: Wolpertinger 2010 Conference, European Association of University Teachers of Banking and Finance, Sept 8-12, Bangor, Wales.
-
Konferensbidrag (övrigt vetenskapligt/konstnärligt)
|
|
| 6. |
|
|
| 7. |
|
|
| 8. |
- Lindblom, Ted, 1956, et al.
(författare)
-
Investment Appraisal Techniques and the Adoption of Quantitative Risk Measures – Evidence from Swedish 500 Largest Firms
- 2010
-
Ingår i: The Sixteenth International Working Seminar on Production Economics, proceedings, March 1-5, 2010. ; 1, s. 297-308
-
Konferensbidrag (refereegranskat)abstract
- This paper examines to what extent business firms use qualitative and quantitative investment appraisal techniques. It is based on the results of a survey sent to all Swedish non-financial corporations among the 500 largest and to all remaining smaller Swedish firms on the stock exchange (response rate = 34%). We find that the diffusion of sophisticated investment appraisal techniques have continued to increase the last decade, and NPV is now the most common technique among large and listed firms. We also observe that firms adopting NPV and other discounted cash flow techniques to a higher degree consider risk and avoid the use of rules of thumbs when making investment decisions. Compared with earlier studies Swedish firms tend to apply quantitative risk assessment methods to a higher degree, but, still many rely on accounting numbers to determine hurdle rates.
|
|
| 9. |
- Lindblom, Ted, 1956, et al.
(författare)
-
Managers’ Capital Structure Decisions - The Pecking Order Puzzle
- 2011
-
Ingår i: Bank Performance, Risk and Firm Financing. - Houndmills, Basingstoke, Hampshire UK : Palgrave, Macmillan. - 9780230313354 ; , s. 273-288
-
Bokkapitel (övrigt vetenskapligt/konstnärligt)abstract
- After the seminal paper by Modigliani & Miller putting forward the irrelevance theorem over fifty years ago, a number of competing theories have been developed for explaining why the financial structure is still believed to be relevant within business firms. Two theories stand out being both frequently referred to and contradictory to each other. The ‘trade-off’ theory suggests that corporate taxes in combination with bankruptcy costs imply that there exists an optimal combination of debt and equity capital that top management should search for in order to maximize shareholder value. The challenging ‘pecking-order’ theory recognizes no such optimum, but instead that there exists a ranking order in the firms between different types of capital where the issuance of equity capital is the seen only as a last resort. The financial structure of a firm is simply an aggregated outcome of financial decisions made by management at different points in time in accordance with the ranking order. In previous research there are empirical evidence supporting either one or both of these theories. However, there are also those proposing other explanations to firms’ financial structure. This paper presents results from a comprehensive survey of financial structure decisions in larger Swedish business firms. It examines the role and importance of different firm characteristics as well as to what extent top management in the firms is affected by concepts like optimal capital structure, financial hierarchy, windows of opportunity, signalling, asymmetric information, risk and uncertainty.
|
|
| 10. |
|
|
