The methodology begins with the determination of the relevant determinants of debt in a transitional economy. These determinants cover the basics of tradeoff model, pecking order hypothesis and free cash flow hypothesis. The paper examines the signaling effects of the determinants of capital structure that are relevant to a transitional market. ![]() The signaling effect refers to the effects of debt on firm’s market value. ![]() The market value is considered as a measure of the investment worthiness. ![]() This paper examines the relationships between changes in firm’s debt and its effects on firm’s market value in a transitional market.
0 Comments
Leave a Reply. |