The choice of capital structure by firms is a recurring topic of corporate finance and evolving on a theoretical and empirical level. On a theoretical level, scholars propose variations to the models by removing the t...The choice of capital structure by firms is a recurring topic of corporate finance and evolving on a theoretical and empirical level. On a theoretical level, scholars propose variations to the models by removing the theoretical hypothesis or expanding variables considered, likewise, on an empirical level, researchers provide survey, which contributions aimed at increasing the understanding of the phenomenon as a whole, considering the possible events in the variety and variability of firms. In particular, one of the most debated topics in the literature regards the existence or absence of relationship between the choices of financial structure and firm value, or the determination of an optimal leverage for the value. Therefore, the attention of researchers has focused on the identification of relationship between debt and equity that maximizes firm＇s performance and meet shareholders＇ expectations in terms of return on capital employed for the same risk. Hence, the aim of this paper is to provide another piece to the cognitive complexity of the phenomenon, focusing the research on Italian firms, given the importance of leverage in the financial structure of Italian firms. The methodology used is based on the analysis conducted using the Mediobanca database aggregated sector by sector to identify the main determinants of financial structure. The conclusion is that it is not possible to say with certainty which financial structure theory better represents the behavior of Italian firms concerning financial structure.展开更多
In this paper, we construct a company value model based on the tax shield effect for overseas listing and privatization scenarios. The trade-off process of privatization decisions is simulated in the context of China ...In this paper, we construct a company value model based on the tax shield effect for overseas listing and privatization scenarios. The trade-off process of privatization decisions is simulated in the context of China concept stock companies’ reality. The results indicate that the value of tax shields, the degree of undervaluation, the ability to obtain cash flows, the risk of short selling, the cost of listing transactions, and fraud penalties are critical factors influencing the choice of privatization. The company value analysis shows that tax shield effect positively affects the probability of privatization. Furthermore, the weaker the ability of a company to obtain cash flow when listed overseas, the lower the WACC, the higher the risk of being shorted, and the higher the cost of listing transactions, the higher the probability that a company will choose to go private. Finally, numerical simulations are adopted to validate the validity of the theoretical model and the findings using SINA’s privatization as a case study. The findings can provide academic guidance and a decision-making basis on trading arrangements for CCS companies.展开更多
文摘The choice of capital structure by firms is a recurring topic of corporate finance and evolving on a theoretical and empirical level. On a theoretical level, scholars propose variations to the models by removing the theoretical hypothesis or expanding variables considered, likewise, on an empirical level, researchers provide survey, which contributions aimed at increasing the understanding of the phenomenon as a whole, considering the possible events in the variety and variability of firms. In particular, one of the most debated topics in the literature regards the existence or absence of relationship between the choices of financial structure and firm value, or the determination of an optimal leverage for the value. Therefore, the attention of researchers has focused on the identification of relationship between debt and equity that maximizes firm＇s performance and meet shareholders＇ expectations in terms of return on capital employed for the same risk. Hence, the aim of this paper is to provide another piece to the cognitive complexity of the phenomenon, focusing the research on Italian firms, given the importance of leverage in the financial structure of Italian firms. The methodology used is based on the analysis conducted using the Mediobanca database aggregated sector by sector to identify the main determinants of financial structure. The conclusion is that it is not possible to say with certainty which financial structure theory better represents the behavior of Italian firms concerning financial structure.
文摘In this paper, we construct a company value model based on the tax shield effect for overseas listing and privatization scenarios. The trade-off process of privatization decisions is simulated in the context of China concept stock companies’ reality. The results indicate that the value of tax shields, the degree of undervaluation, the ability to obtain cash flows, the risk of short selling, the cost of listing transactions, and fraud penalties are critical factors influencing the choice of privatization. The company value analysis shows that tax shield effect positively affects the probability of privatization. Furthermore, the weaker the ability of a company to obtain cash flow when listed overseas, the lower the WACC, the higher the risk of being shorted, and the higher the cost of listing transactions, the higher the probability that a company will choose to go private. Finally, numerical simulations are adopted to validate the validity of the theoretical model and the findings using SINA’s privatization as a case study. The findings can provide academic guidance and a decision-making basis on trading arrangements for CCS companies.
