8. Capital Structure Theories and Empirical Tests: An Overview

  1. H. Kent Baker and
  2. Gerald S. Martin
  1. Stein Frydenberg

Published Online: 20 DEC 2011

DOI: 10.1002/9781118266250.ch8

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

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

How to Cite

Baker, H. K. and Martin, G. S. (2011) Capital Structure Theories and Empirical Tests: An Overview, in Capital Structure and Corporate Financing Decisions: Theory, Evidence, and Practice, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118266250.ch8

Author Information

  1. Associate Professor, Trondheim Business School

Publication History

  1. Published Online: 20 DEC 2011
  2. Published Print: 18 APR 2011

ISBN Information

Print ISBN: 9780470569528

Online ISBN: 9781118266250

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Keywords:

  • capital structure;
  • capital market imperfection;
  • asymmetric information cost;
  • agency cost;
  • product market commitment

Summary

This chapter contains sections titled:

  • Introduction

  • Capital Structure Determinants

  • Dynamic Capital Structure and Tests of Pecking Order Theory Versus Trade-Off Theory

  • Speed of Adjustment to Target Capital Structure

  • Surveys and Events Studies

  • Summary and Conclusions

  • Discussion Questions

  • About the Author