IDEAS home Printed from https://ideas.repec.org/a/aic/journl/y2007v14p126-132.html
   My bibliography  Save this article

UK and US multinational corporations capital structure: different approaches to shareholder value maximization

Author

Listed:
  • Floarea Iosub Dobrica

    () (The Department of Economics, Quantitative Analysis and Business Information Systems, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University)

Abstract

The shareholder value maximization is the keystone of the actual stage of capitalism. The objective function of publicly quoted corporations is nowadays the maximization of the shareholders' wealth, i.e. the sum of dividends and capital gains. Despite the increasing international financial opening, the shareholder value model, usually associated with UK and US, is typically presented as opposed to that of Continental Europe (i.e. Germany, France) and Japan. Yet, less attention is paid to the particularities of the shareholder value model across its representative countries. Are American and British corporations using similar financial strategies in response to shareholders exigencies? The empirical analysis conducted herein allows us to assert that, despite the association of both countries to the same model, there are striking differences in the financing strategies of UK and US MNCs.

Suggested Citation

  • Floarea Iosub Dobrica, 2007. "UK and US multinational corporations capital structure: different approaches to shareholder value maximization," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 54, pages 126-132, November.
  • Handle: RePEc:aic:journl:y:2007:v:14:p:126-132
    as

    Download full text from publisher

    File URL: http://anale.feaa.uaic.ro/anale/resurse/18_Dobrica_FI_-_UK_and_us_multinational_corporations_capital_structure.pdf
    Download Restriction: no

    File URL: http://anale.feaa.uaic.ro/anale/en/Arhiva%202007%20-%20Dobrica/169
    Download Restriction: no

    References listed on IDEAS

    as
    1. Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-592, July.
    2. Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
    3. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    4. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    5. Malcolm Baker & Jeffrey Wurgler, 2002. "Market Timing and Capital Structure," Journal of Finance, American Finance Association, vol. 57(1), pages 1-32, February.
    6. Myers, Stewart C., 1984. "Capital structure puzzle," Working papers 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aic:journl:y:2007:v:14:p:126-132. 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: (Sireteanu Napoleon-Alexandru). General contact details of provider: http://edirc.repec.org/data/feaicro.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.