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The impact of dividends, debt and investment on valuation models

Article Abstract:

The reliability of the basic earnings and equity model of value is tested using the 8,287 cases reported by various industrial and commercial companies in the UK from 1987-1995. It was respecified to be able to analyze the important values of dividends, capital structure and capital expenditure. Result revealed that dividend and capital structure signals are significant but dividends have less impact in large companies or corporation with high return or equity. On the other hand, the level of corporate debt had not affected the equity value as shown in the study.

Dividends, Capital investments, Debt financing (Corporations), Debt financing

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Debt rescheduling versus bankruptcy: the creditor's decision problem

Article Abstract:

An examination of the case of small-firm debt rescheduling by a large bank as an alternative to bankruptcy reveals the major influences on the rescheduling decision. These are the magnitudes of asset values and bankruptcy costs relative to liquidation values and the magnitudes of expected profits under rescheduling. A model wherein the decision on bankruptcy under default is left to the creditor is presented.

Debt Management-Bank Loans, External debt relief, Debt relief, Bankruptcy, Bank loans, Loan servicing

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Determinants of capital structure and adjustment to long run target: evidence from UK company panel data

Article Abstract:

Research into the empirical determinants of target capital structure of companies and the adjustment process towards this target is presented. There is evidence that liquidity, profitability and growth opportunities have a negative impact on the capital structure choice of companies.

Management, Capital assets

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