[雙語翻譯]資本結構外文翻譯——資本結構理論綜述

1、字數：英文 字數：英文 2840 2840 單詞， 單詞，15223 15223 字符；中文 字符；中文 5026 5026 漢字 漢字出處： 出處：DK DK Yapa Yapa Abeywardhana.Capital Abeywardhana.Capital Structure Structure Theory: Theory: An An Overview[J] Overview[J] Accounting Accounting

2、 and and Finance Finance Research.2017,6(1):133-138 Research.2017,6(1):133-138外文文獻： 外文文獻： Capital Structure Theory: An OverviewAbstract Capital structure is still a puzzle among finance scholars. Purpose of this study i

3、s to review various capital structure theories that have been proposed in the finance literature to provide clarification for the firms’ capital structure decision. Starting from the capital structure irrelevance theory

4、of Modigliani and Miller (1958) this review examine the several theories that have been put forward to explain the capital structure.Three major theories emerged over the years following the assumption of the perfect cap

5、ital market of capital structure irrelevance model. Trade off theory assumes that firms have one optimal debt ratio and firm trade off the benefit and cost of debt and equity financing. Pecking order theory (Myers, 1984,

6、 Myers and Majluf, 1984) assumes that firms follow a financing hierarchy whereby minimize the problem of information asymmetry. But neither of these two theories provide a complete description why some firms prefer debt

7、and others prefer equity finance under different circumstances.Another theory of capital structure has introduced recently by, Baker and Wurgler (2002), market timing theory, which explains the current capital structure

8、as the cumulative outcome of past attempts to time the equity market. Market timing issuing behaviour has been well established empirically by others already, but Baker and Wurgler (2002) show that the influence of marke

9、t timing on capital structure is regular and continuous. So the predictions of these theories sometimes acted in a continuously declining Weighted Average Cost of Capital (WACC). Further this approach assume the concept

10、of optimal capital structure and thereby very clearly implies that WACC decreases only for a certain level of financial leverage and reaching the minimum level. Further increase in financial leverage would increase the W

11、ACC.During the past five decades various theories have been developed and to explain the capital structure and value of the firm and main factors determining capital structure. Simultaneously enormous number of empirical

12、 studies have also tried to explain these theories and their effectiveness.2.Capital Structure Theories2.1.Capital Structure Irrelevance Theory of Modigliani and MillerCapital structure irrelevance theory of Modigliani a

13、nd Miller (1958) is considered as the starting point of modern theory of capital structure. Based on assumptions related to the behavior of investors and capital market MM illustrates that firm value is unaffected by the

14、 capital structure of the firm. Securities are traded in perfect capital market, all relevant information are available for insiders and outsiders to take the decision (no asymmetry of information), that is transaction c

15、ost, bankruptcy cost and taxation do not exist. Borrowing and lending is possible for firms and individual investors at the same interest rate which permits for homemade leverage, firms operating in a similar risk classe

16、s and have similar operating leverage, interest payable on debt do not save any taxes and firms follow 100% dividend payout. Under these assumptions MM theory proved that there is no optimal debt to equity ratio and capi

17、tal structure is irrelevant for the shareholders wealth. This preposition presented by MM (1958) in their seminal paper and argue that value of levered firm is same as the value of unlevered firm. Therefore they propose