Scientific Research Publishing

Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=52888#.VKtS9snQrzE Author(s)    Chunlong Zhang , Guoliang Zhang Affiliation(s) School of Business Management, Dalian University of Technology, Dalian, China . ABSTRACT With the reform of our property rights system, the maturity of the capital market, and the diversification of corporate financing, the capital structure decision has become the major concern of financial management. There are numbers of researches on how to determine the optimal capital structure, what factors affect the capital structure and what the relationship is like between the capital structure and the firm value. Built upon prior literature, this paper investigates how managerial power influences the capital structure with the operation risks and the characteristics of the directors’ structure. We find that the capital structure deviates from the opti...

Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=52487#.VJoaVcCAM4 Author(s)   José L. Gallizo 1* , Ana Vendrell Vilanova 1 , Manuel Salazar 2 Affiliation(s) 1 Department of Business Administration, University of Lleida, Lleida, Spain . 2 PhD IEDE Business School, Santiago de Chile, Chile . ABSTRACT This study develops a dynamic model of optimization of the value of the company following the postulates of the theory of Trade-Off. The model includes Bystrom formulation for calculating the cost of bankruptcy in the search the optimal debt. Our model is innovative in several respects: 1) raises calculate the cost of bankruptcy easily. This model is easy to implement in firms 2) cal...

Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=50664#.VEh-G1fHRK0 Author(s) Yiping Chen , Xindong Zhang , Zhe Liu Affiliation(s) School of Economic and Management, Shanxi University, Taiyuan, China . ABSTRACT In this paper, we analyze the low-leverage phenomenon of firms and examine the question of why some firms have low leverage in China. We find Low-leverage firms are smaller, have higher profitability and hold more cash balances than control firms chosen by industry and size. Our evidence supports the hypothesis that these firms are operated by risk-aversion manager. Firms with older Chief Executive Officer (CEO) and higher first shareholder ownership are more likely to have ...