The cost of capital, corporation finance and the theory of investment

By P. R. S. Terra. 2008

1,342 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/3c47c38ff4e06e61bab54f2238ea86903c39aa1c

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In Strategy and Management

Citations in the corpus

Financial Development and the Cash Flow Sensitivity of Cash (2006, neutral): “In the Modigliani and Miller (1958) world of frictionless capital markets, a firm’s financing decision has no bearing on its investments.”
Debt Capacity and Tests of Capital Structure Theories (2010, background): “Once one assumes a role for capital structure, however, we are necessarily removed from the Modigliani and Miller (1958) world, and it would be interesting and important to explore the link between a firm’s financing and capital budgeting decisions.”
Family ownership, financing constraints and investment decisions (2011, positive): “2 Computation based on data in the DAI Factbook (Deutsches Aktieninstitut, 2006). policies (Modigliani and Miller, 1958).”
Capital Structure and Corporate Performance: Empirical Study on the Public Jordanian Shareholdings Firms Listed in Amman Stock Market (2012, neutral): “The roots of capital structure theory refers to more than fifty decades since the seminal work which presented by Modigliani and Miller 1958(thereafter MM) .”
On the equivalence of private and public money (2019, background): “In this sense, our research strategy is inspired by Modigliani & Miller (1958), Barro (1974), and the many other equivalence results in the economics literature.”
The Real Effects of Financial Sector Interventions During Crises (2011, methodology): “Peek et al. (2003) identify loan supply shocks using CAMEL ratings of U.”
The Determinants of Corporate Debt Maturity Structure (2012, background): “According to Stiglitz (1974) and Modigliani and Miller (1958), in efficient and integrated markets, the financial management policy cannot decrease the costs of capital due to the interrelation between the different types of capital costs.”
The impact of financial constraints on firm survival and growth (2007, background): “Now, under perfect capital markets, internal and external sources of ﬁnancial funds are perfectly substitutable (Modigliani and Miller, 1958), so that the availability of internal funds should not aﬀect investment decisions.”
Taxes and Corporate Policies: Evidence from a Quasi Natural Experiment: Taxes and Corporate Policies (2015, background): “In Modigliani and Miller (1963), corporate taxes reduce value by the full amount of the tax rate if there are no tax shields.”
Toward a theory of responsible investing : On the economic foundations of corporate social responsibility (2015, neutral): “Without agency problems, taxes, and transaction costs, the value of the firm only depends on output and not on the financing structure (cf. Modigliani and Miller, 1958).”
Macroeconomic Factors and Corporate Capital Structure (2014, background): “The riskfree rate represented as a rule by Treasury bill rate is a significant element of the cost of equity, which in turn associated with capital structure (Modigliani and Miller, 1958).”