Capital Structure and Corporate Financing Decisions

Acknowledgments ix 1 Capital Structure: An Overview 1 H. Kent Baker and Gerald S. Martin PART I The Elements of Capital Structure 15 2 Factors Affecting Capital Structure Decisions 17 Wolfgang Bessler, Wolfgang Drobetz, and Robin Kazemieh 3 Capital Structure and Corporate Strategy 41 Maurizio La Rocca 4 Capital Structure and Firm Risk 59 Valentin Dimitrov 5 Capital Structure and Returns 75 Yaz Gulnur Muradoglu and Sheeja Sivaprasad 6 Capital Structure and Compensation 93 Alan Victor Scott Douglas 7 Worldwide Patterns in Capital Structure 111 Carmen Cotei and Joseph Farhat PART II Capital Structure Choice 127 8 Capital Structure Theories and Empirical Tests: An Overview 129 Stein Frydenberg 9 Capital Structure Irrelevance: TheModigliani-Miller Model 151 Sergei V. Cheremushkin 10 Trade-Off, Pecking Order, Signaling, and Market Timing Models 171 Anton Miglo 11 Estimating Capital Costs: Practical Implementation of Theory's Insights 191 Robert M. Conroy and Robert S. Harris 12 Economic, Regulatory, and Industry Effects on Capital Structure 211 Paroma Sanyal 13 Survey Evidence on Financing Decisions and Cost of Capital 229 Franck Bancel and Usha R. Mittoo 14 Survey Evidence on Capital Structure: Non-U.S. Evidence 249 Abe de Jong and Patrick Verwijmeren PART III Raising Capital 261 15 The Roles of Financial Intermediaries in Raising Capital 263 Neal Galpin and Heungju Park 16 Bank Relationships and Collateralization 281 Aron A. Gottesman and Gordon S. Roberts 17 Rating Agencies and Credit Insurance 299 John Patrick Hunt 18 Secured Financing 319 Hugh Marble III 19 Sale and Leasebacks 335 Kyle S. Wells PART IV Special Topics 351 20 Financial Distress and Bankruptcy 353 Kimberly J. Cornaggia 21 Fiduciary Responsibility and Financial Distress 371 Remus D. Valsan and Moin A. Yahya 22 The Lease versus Buy Decision 387 Sris Chatterjee and An Yan 23 Private Investment in Public Equity 401 William K. Sjostrom Jr. 24 Financing CorporateMergers and Acquisitions 419 Wolfgang Bessler, Wolfgang Drobetz, and Jan Zimmermann Answers to Chapter Discussion Questions 445 Index 475