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

Given the dramatic changes that have recently occurred in the economy, including the global financial crisis, the topic of capital structure and corporate financing decisions is critically important. But despite being one of the most highly researched topics in finance, many questions within this area still exist. That is why Capital Structure and Corporate Financing Decisions, part of the Robert W. Kolb Series in Finance, has been created. Filled with in-depth insights and practical advice, this book contains detailed discussions of essential capital structure components; key financial theories as well as empirical support for them; and practices involving corporate financial policies, strategies, and choices. Along the way, the book emphasizes how a sound capital structure can simultaneously reduce a firm’s cost of capital and increase value to shareholders. With chapters from leading academics and researchers from around the world, this reliable resource provides a synthesis of the current state of capital structure and puts a firm’s financing decisions in perspective. Divided into four comprehensive parts, it skillfully: -Examines the factors influencing capital structure decisions as well as the interactions among capital structure, strategy, firm risk, returns, and compensation -Highlights the key issues involved in capital structure choice -Explores the various aspects of raising capital, including bank relationships and collateralization, rating agencies and credit insurances, secured finance, and sale and leasebacks -Discusses special topics involving financial distress, the lease-versus-buy decision, private investment in public equity, and financing mergers and acquisitions While questions still remain on how firms should determine their financing mix, extensive empirical and theoretical evidence is available to help you unravel the capital structure puzzle. This timely guide contains a wealth of information that will allow you to understand th …