top
A-Z20182019Previous ConferencesConference Articles
二维码
 
Articles
  • OpenAccess
  • Managerial Power, Capital Structure and Firm Value  [AFM 2014]
  • DOI: 10.4236/jss.2014.212019   PP.138 - 142
  • Author(s)
  • Chunlong Zhang, Guoliang Zhang
  • 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 optimal level more in firms with stronger managerial power, and these firms have a stronger discount on such deviation.

  • KEYWORDS
  • Managerial Power, Capital Structure, Firm Value
  • References
  • [1]
    Modigliani, E.F. and Miller, M.H. (1958) The Cost of Capital, Corporate Finance and the Theory of Investment. The American Economist, 48, 261-297.
    [2]
    Jensen, M.C. and Meckling, W. (1976) Theory of the Firm, Management Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3, 305-360.
    http://dx.doi.org/10.1016/0304-405X(76)90026-X
    [3]
    Fast, N.J., Sivanathan, N.S., Mayer, N.D. and Galinsky, A.D. (2012) Power and Overconfident Decision-Making. Organizational Behavior and Human Decision Processes, 249-260.
    [4]
    Hackbarth, D. (2008) Managerial Traits and Capital Structure Decisions. Journal of Financial and Quantitative Analysis, 43, 843-882.
    http://dx.doi.org/10.1017/S002210900001437X
    [5]
    Malmendier, U., Tate, G. and Yan, J. (2009) Managerial Beliefs and Corporate Financial Policies. USC FBE Finance Seminar.

Engineering Information Institute is the member of/source content provider to

http://www.scirp.org http://www.hanspub.org/ http://www.crossref.org/index.html http://www.oalib.com/ http://www.ebscohost.com/ http://www.proquest.co.uk/en-UK/aboutus/default.shtml http://ip-science.thomsonreuters.com/cgi-bin/jrnlst/jlresults.cgi?PC=MASTER&Full=journal%20of%20Bioequivalence%20%26%20Bioavailability http://publishers.indexcopernicus.com/index.php