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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.

Suggested Citation

  • Miglo, Anton, 2012. "Managers versus students: new approach in improving capital structure education," MPRA Paper 46695, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:46695
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    File URL: https://mpra.ub.uni-muenchen.de/46695/1/MPRA_paper_46695.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

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

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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