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Questions related from B.T Matemilola
Apart from the conventional ‘dummy variable’ approach for measuring financial crisis, what are the alternative proxies for measuring financial crisis when conducting research in areas of financial...
17 October 2017 5,007 6 View
Corporate Finance course is a practical course but it is sometimes presented to students as a theoretical course. Could that explain why some undergraduate students struggle to understand this...
18 June 2016 5,993 3 View
Despite the tax-shield benefits of debt, some firms use zero level of debt in their capital structure. It appears that existing capital structure theories are unable to explain this zero debt...
11 April 2015 8,255 24 View
Confusion arises in discussions among people who use different definitions of financial leverage. The term has multiple definitions, especially in the field of corporate finance. Moreover, it...
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Unlike previous years, risks managers now are taking their position among the top management teams contributing to strategic planning relating to risk. The markets are now interconnected...
11 February 2015 8,153 15 View
The coefficient of lagged debt ratio has economic meaning in capital structure research that makes use of dynamic model specification. From the coefficient of the lagged debt variable, researchers...
31 December 2014 828 7 View
Researchers sometimes use ‘dummy variables’ to capture qualitative information that is difficult to measure when conducting academic research. The use of dummy variables enable researchers to...
15 November 2014 7,450 2 View
Within the context of corporate finance research, it appears logical to include ‘firm age’ as a determinant of company performance (e.g. accounting returns or stock returns), and most studies...
11 November 2014 1,643 6 View
Most microfinance institutions were founded as non-profit organizations with main mission of providing financial services to the low income class or financially excluded people, mostly women....
20 October 2014 884 22 View
An issue surrounding dividend policy is the type of distribution: cash or share repurchase. The tax argument strongly favors share repurchase, and financial managers appear to place high value on...
09 October 2014 7,628 10 View
VAR models have become increasingly popular in recent decades. VAR provides empirical evidence on the response of macroeconomic variables to various exogenous shocks or impulses. Within the...
12 July 2014 1,366 8 View
Most corporate finance and economics theoretical models assume that economic agents are on average rational, and make decisions based on all available information to find the optimal choice. The...
19 April 2014 4,359 13 View
According to the trade-off theory, optimal capital exists that maximizes firm value. Conversely, in pecking order theory, there is no optimal capital structure. Instead, firms follow a financing...
13 April 2014 6,375 4 View
The capital asset pricing model (CAPM) uses beta as a measure of systematic risk. But the Modigliani and Miller’s theory implies that beta of a levered firm is greater than the beta of an...
26 January 2014 3,799 13 View
