Changes in corporate debt policy: information asymmetry and agency factors

Article Abstract:

A predicted positive relationship between managerial ownership and leverage has been established to support the agency theory. Managers can use debt to rely less on external equity capital and allow them to own a greater portion of the firm, which has made institutional ownership a major factor in corporate debt policy. Increased shareholder activism has also caused institutional ownership to be a substitute for debt financing, and these concepts support the Jensen free cash flow theory and the informational asymmetry theory.

Debt & Capital Management, Analysis, Management, Debt, Financial management, Debt financing (Corporations), Debt financing

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Leverage determinants in the absence of corporate tax system: the case of non-financial publicly traded corporations in Saudi Arabia

Article Abstract:

In Saudi Arabia corporate tax code is unique where taxes are based on total networth. We used a sample of firms composed of all publicly traded firms except financial sectors to study the variations in leverage ratios and their determinants. It was found that leverage was employed with different variations in the studied sectors. The study examined a set of factors that determined leverage levels.

Saudi Arabia, Statistical Data Included, Research, Tax research

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Corporate acquisitions of fine art: measuring the underlying motivations

Article Abstract:

Companies acquire works of fine art mainly for pecuniary reasons rather than non-pecuniary ones. This was gleaned from a survey of 450 corporations designed to find out their motivations for assembling such corporate collections. Among non-monetary reasons cited for acquiring fine art are improvement of employee morale and productivity as well as enhancement of corporate image.

Investments, Surveys, Business enterprises, Art, Collections and collecting, Art as an investment

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