On testing the Tradeoff Theory of capital structure with real options
Name
807147200-MIT.pdf
Description
Full printable version
Size
3.27 MB
Format
Adobe PDF
Checksum (MD5)
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Author(s)
Shore, William T., S.M. (William Thomas). Massachusetts Institute of Technology
Advisor(s)
Stewart C. Myers.
Date Issued
2012
Publisher
Massachusetts Institute of Technology
Abstract
We explain often anomalous results of capital structure tests by infusing tradeoff theory with real options. Of course one can explain almost everything using a soft qualitative theory. This paper's addition is to use a quantitative approach to generate tradeoff theory predictions for firms with valuable real options. We are able to explain many of the results of Rajan and Zingales (1995), Welch (2004), and Flannery and Rangan (2006).
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Economics, June 2012.
"June 2012." Cataloged from PDF version of thesis.
Includes bibliographical references (p. 120-122).
Subjects
Economics.
MIT Department
Massachusetts Institute of Technology. Department of Economics
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