Testing the Static Trade-Off Theory of Capital Structure: A Corporate Governance Perspective

The Impact of Recent Economic Crisis on the Capital Structure of Turkish Corporations and the Test of Static Trade-off Theory: Implications for Corporate Governance System

Turkey has experienced two economic shocks, where the second one had devastating effects on the financial sector and real sector. The purpose of this paper is to show the impact of economic crisis on the capital structure of corporations, which are traded in İstanbul Stock Exchange, and the impact of capital structure on the performance of corporations. It is hypothesized that high leverage fir...

Corporate Governance and Capital Structure Dynamics

We develop a dynamic tradeoff model to examine the importance of manager-shareholder conflicts in capital structure choice. In the model, firms face taxation, refinancing costs, and liquidation costs. Managers own a fraction of the firms’ equity, capture part of the free cash flow to equity as private benefits, and have control over financing decisions. Using data on leverage choices and the mo...

Capital Structure , Corporate Governance , and the Effect of Sarbanes - Oxley

The Sarbanes-Oxley Act represented a major legislative action designed to increase transparency and accountability in U.S. corporations. Within the context of agency theory and corporate governance, the expectation is that the enactment of Sarbanes-Oxley impacted the agency relationship of firms and hence affected the corporate governance structure. With these changes, the question arises as to...

agency theory in the corporate governance

the emergence and unprecedented growth of joint stock companies is undoubtedly one of the most significant economic developments.one of the outcomes of this development is the separation of ownership and control of the companies. such separation make it possible for the managers of the companies to make dicisions to serve their interes at the expense of the companies shareholders .this conflict...

Making Capital Markets Work through Corporate Governance