Applied Financial Economy
Опубликовано на портале: 21-06-2006Saumitra N. Bhaduri Applied Financial Economy. 2002. Vol. 12. No. 9. P. 655-665.
Existing empirical research on capital structure has been largely confined to the United States and a few other advanced countries. This paper attempts to study the capital structure choice of Less Developed Countries (LDCs) through a case study of the Indian Corporate sector. The objective is to develop a model that accounts for the possibility of restructuring costs in attaining an optimal capital structure and addresses the measurement problem that arises due to the unobservable nature of the attributes influencing the optimal capital structure. The evidence presented here suggests that the optimal capital structure choice can be influenced by factors such as growth, cash flow, size, and product and industry characteristics. The results also confirm the existence of restructuring costs in attaining an optimal capital structure.
Опубликовано на портале: 22-06-2006S. G. M. Fifield, D. M. Power, C.D. Sinclair Applied Financial Economy. 2002. Vol. 12. No. 3. P. 213-229.
Over the last decade, a number of studies have examined the costs and benefits from investing in equities traded on emerging stock markets (ESMs). The general conclusion to emerge from these studies is that investors have been able to improve portfolio performance significantly by including an emerging equity market component in investment portfolios. However, the ex-post framework utilized in past analyses potentially overstates the true level of gains which can be obtained from an emerging market diversification strategy; they are computed on the assumption that, with respect to the inputs to the portfolio decision, investors are blessed with perfect foresight. This paper attempts to overcome this problem by estimating the ex-ante gains available from investing in emerging stock markets. In particular, the paper investigates whether, by using a simple strategy based on historical data to forecast portfolio inputs, all of the gains which are available from ex-post analyses of diversification can be achieved in practice. The results obtained point overwhelmingly to the inadvisability of relying on historical data to identify ex-ante optimal emerging market portfolios; the strategies examined in this paper achieved very few of the gains attained in ex-post analyses of diversification. Copyright 2002 by Taylor and Francis Group