Determinants of capital structure: an empirical analysis of firms in industrialized countries

Article Abstract:

Determinants of capital structure in major industrialized countries such as US, Germany and Japan have shown considerable similarity, which include asset structure, company growth, size, research and development expenses, risk and task factor. Additionally, industrialized firms tend to conform with the pecking order theory, where past profitability is the determinant of financial leverage. Italian firms are found to have greater leverage ratios, and German firms lower leverage ratios, when compared to American corporations.

Finance, Industrialized countries, Corporations, Corporate finance, Industrial nations, Determinants

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Signalling and mimicry: the evidence from firm goal definition

Article Abstract:

An examination of the signalling theory showed that better performing companies report shareholder wealth maximization as their foremost goal less frequently than poorly performing firms. However, firms that report shareholder wealth maximization as their main goal do not necessarily demonstrate better performance than those companies with alternative goals. It was also found that non-enforceable signals, including the disclosure of company objectives, may not be reliable signals for investors.

Management Policy & Goals, Research, Models, Strategic planning (Business), Information theory, Goal setting, Management by objectives, Information measurement

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Economic value added: some empirical EVAdence

Article Abstract:

The successful marketing of the economic value added (EVA) by consultancies as a management incentive tool is an empirical evidence of its effectiveness. Stern Stewart & Co. has exerted much efforts in promoting their version of EVA. However, an investigation suggests that claims on the tool's effectiveness are exaggerated. Although some managers respond to the incentive tool, there are no evidences that EVA is closer than net income to firm values and equity returns.

Bonus & Merit Payments, Management, Evaluation, Value added, Incentives (Business), Bonuses

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