Abstract
The capital structure decision is to optimize the proportions of debt to equity. For a listed company, market value is the price at which willing buyers and sellers would trade the assets. The company’s capital structure decision has positive, negative and uncertain effects on its own total market value, which may be adjusted by the controllable leverage decision making. Furthermore, the relevance between them is far stronger than the ongoing managerial reform (i.e. the cost control). Along with the intensive study of the equity incentive plan, the extent of influence of capital structure decision on a listed company’s total market value should be explored more deeply. Key words: Capital Structure; A Listed Company; Market Value
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