Determinants of financial signalling theory and systematic risk classes in Egypt: implications for revenue management
AbstractThis paper examines the relationships between the changes in the firm's capital structure and their effects on the firm's market value for three different levels of systematic risk. The underlying assumption of signalling is that when a firm changes its capital structure, its market value might change accordingly resulting in changes in the firm's degree of systematic risk. The results indicate that industry average debt ratio has a positive signalling effect for the medium systematic risk firms only and that liquidity, profitability, timing of equity issuance and financial flexibility are the factors which have to be considered when making debt financing decisions. The robustness of these factors indicates that they are associated with strong financial signals that carry to the investors the soundness of the borrowing decisions. These signals help the firms generate more revenue financing from the stock market.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Revenue Management.
Volume (Year): 1 (2007)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=99
Egypt; financial signalling theory; revenue management; systematic risk; capital structure; market value; financial agencies; debt ratio; debt financing; stock markets.;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Sebastian Ofumbia Uremadu & Rapuluchukwu Uchenna Efobi, 2012. "The Impact of Capital Structure and Liquidity on Corporate Returns in Nigeria: Evidence from Manufacturing Firms," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(3), pages 1-16, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.