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Capital Structure Decisions in Small and Large Firms: A Life-cycle Theory of Financing

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  • Zsuzsanna Fluck

Abstract

This paper focuses on the dynamic capital structure of firms: Why firms choose very different capital structure in different stages of their life-cycles? In a model of optimal financial contracting, we investigate whether subsequent financing decisions

Suggested Citation

  • Zsuzsanna Fluck, 1999. "Capital Structure Decisions in Small and Large Firms: A Life-cycle Theory of Financing," New York University, Leonard N. Stern School Finance Department Working Paper Seires 99-069, New York University, Leonard N. Stern School of Business-.
    • Handle: RePEc:fth:nystfi:99-069
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    File URL: http://www.stern.nyu.edu/fin/workpapers/papers99/wpa99069.pdf
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    References listed on IDEAS

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    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    2. Steven N. Kaplan & Per Strömberg, 2003. "Financial Contracting Theory Meets the Real World: An Empirical Analysis of Venture Capital Contracts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 281-315.
    3. Dybvig, Philip H & Zender, Jaime F, 1991. "Capital Structure and Dividend Irrelevance with Asymmetric Information," The Review of Financial Studies, Society for Financial Studies, vol. 4(1), pages 201-219.
    4. repec:bla:jfinan:v:53:y:1998:i:4:p:1213-1243 is not listed on IDEAS
    5. Douglas W. Diamond, 1984. "Financial Intermediation and Delegated Monitoring," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(3), pages 393-414.
    6. Zwiebel, Jeffrey, 1996. "Dynamic Capital Structure under Managerial Entrenchment," American Economic Review, American Economic Association, vol. 86(5), pages 1197-1215, December.
    7. Bolton, P. & von Thadden, E.L., 1996. "Blocks, liquidity and corporate control," Other publications TiSEM 31dd6490-ef1f-452b-b233-5, Tilburg University, School of Economics and Management.
    8. repec:bla:jfinan:v:53:y:1998:i:1:p:1-25 is not listed on IDEAS
    9. Gompers, Paul A, 1995. "Optimal Investment, Monitoring, and the Staging of Venture Capital," Journal of Finance, American Finance Association, vol. 50(5), pages 1461-1489, December.
    10. Harris, Milton & Raviv, Artur, 1989. "The design of securities," Journal of Financial Economics, Elsevier, vol. 24(2), pages 255-287.
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    Cited by:

    1. Anjali Kumar & Manuela Francisco, 2005. "Enterprise Size, Financing Patterns, and Credit Constraints in Brazil : Analysis of Data from the Investment Climate Assessment Survey," World Bank Publications - Books, The World Bank Group, number 7330.
    2. Huang, Ying Sophie & Wang, Chia-Jane, 2015. "Corporate governance and risk-taking of Chinese firms: The role of board size," International Review of Economics & Finance, Elsevier, vol. 37(C), pages 96-113.
    3. Wen-Hsien Tsai & Ching-Chien Yang & Jun-Der Leu & Ya-Fen Lee & Chih-Hao Yang, 2013. "An Integrated Group Decision Making Support Model for Corporate Financing Decisions," Group Decision and Negotiation, Springer, vol. 22(6), pages 1103-1127, November.

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