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Managers versus students: new approach in improving capital structure education

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  • Miglo, Anton

Abstract

According to Graham and Harvey (2001), an immense gap exists between capital structure theories and practice. By analyzing students’ perception of capital structure theories and the differences between their opinion and that of the current CEO’s and managers this paper argues that this can be partially explained by current educational practices. Educators mostly focus on one or maybe two most popular theories and students have much smaller knowledge about other theories. Secondly educational practices favor trade-off theory to asymmetric information based theories. The paper provides some suggestions regarding capital structure education and future research.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 46695.

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Date of creation: 2012
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Publication status: Published in Journal of Education and Vocational Research 11.3(2012): pp. 353-369
Handle: RePEc:pra:mprapa:46695

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Related research

Keywords: capital structure education; trade-off theory; pecking-order theory; shareholders-bondholders conflict; life cycle theory; flexibility theory; debt and discipline;

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