Publicação
The hidden value behind capital structure decisions
| dc.contributor.advisor | Gomes, Pedro Santa-Clara | |
| dc.contributor.author | Silva, Carlos Afonso Bi França e | |
| dc.date.accessioned | 2013-05-07T10:35:16Z | |
| dc.date.available | 2013-05-07T10:35:16Z | |
| dc.date.issued | 2009-06 | |
| dc.description | A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and Economics | por |
| dc.description.abstract | I estimate the optimal capital structure for a growth company, for which market value is dictated by its highly volatile nature. I study the welfare impact of corporate taxes, analyzing their economic effect of inducing higher bankruptcy levels. Assuming that management always seeks to optimize the market value of company’s assets, I find a significant loss of value that varies negatively with volatility. Flow and stock insolvency are important for the maximization of capital structure, and I compare both, modeling the value of the company as an option on its revenues. These are not only highly significant for R&D and startup companies but also have significant welfare consequences. I compare the options of liquidation and re-financing and find a clearly important role of early liquidation for R&D frameworks. I complement the study with a comparative statics analysis estimating the impact of risk to the value of the firm and the optimal capital structure decision, for a cross-section of firms. The results present quantitative evidence that reinforce the literature of trade-off and capital structure applied to growth companies. | por |
| dc.identifier.uri | http://hdl.handle.net/10362/9476 | |
| dc.language.iso | eng | por |
| dc.peerreviewed | no | por |
| dc.publisher | NSBE - UNL | por |
| dc.subject | Capital structure | por |
| dc.subject | Real options | por |
| dc.subject | R&D valuation | por |
| dc.subject | Simulation | por |
| dc.title | The hidden value behind capital structure decisions | por |
| dc.type | master thesis | |
| dspace.entity.type | Publication | |
| rcaap.rights | openAccess | por |
| rcaap.type | masterThesis | por |