Advanced Search
MyIDEAS: Login to save this article or follow this journal

Impact of capital structure on firm’s value: Evidence from Bangladesh

Contents:

Author Info

  • Anup Chowdhury

    ()
    (BRAC Business School, BRAC University, Bangladesh.)

  • Suman Paul Chowdhury

    ()
    (BRAC Business School, BRAC University, Bangladesh.)

Registered author(s):

    Abstract

    Modigliani & Miller (1958) show the impact of debt-equity ratio on firm value in their capital structure theory. Economist and financial researchers have spent time to develop new thoughts around this theory. Despite their effort the Modigliani & Miller (MM) model is still in vague. In this paper attempt has been made to empirically support the argument of MM. The paper tests the influence of debt-equity structure on the value of shares given different sizes, industries and growth opportunities with the companies incorporated in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) of Bangladesh. For the robustness of the analysis samples are drawn from the four most dominant sectors of industry i.e. engineering, food & allied, fuel & power, and chemical & pharmaceutical to provide a comparative analysis. A strong positively correlated association is evident from the empirical findings when stratified by industry.

    Download Info

    If 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.
    File URL: http://academicpublishingplatforms.com/downloads/pdfs/beh/volume3/201103201454_10_V3_BEH_BANGLADESH_AnupChowhury_et_al_d_ac.pdf
    Download Restriction: no

    File URL: http://academicpublishingplatforms.com/article.php?journal=BEH&number=3&article=243
    Download Restriction: no

    Bibliographic Info

    Article provided by Prague Development Center in its journal Business and Economic Horizons (BEH).

    Volume (Year): 3 (2010)
    Issue (Month): 3 (October)
    Pages: 111-122

    as in new window
    Handle: RePEc:pdc:jrnbeh:v:3:y:2010:i:3:p:111-122

    Contact details of provider:
    Web page: http://academicpublishingplatforms.com/journal.php?journal=BEH
    More information through EDIRC

    Related research

    Keywords: Capital structure; firm value; wealth maximization; time series; leverage decision.;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. MacKie-Mason, Jeffrey K, 1990. " Do Taxes Affect Corporate Financing Decisions?," Journal of Finance, American Finance Association, vol. 45(5), pages 1471-93, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:pdc:jrnbeh:v:3:y:2010:i:3:p:111-122. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jaroslav Holecek).

    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.