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Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.13/804687

Title: The effect of capital structure change on the valuation of companies
Author/Creator: Rodrigs, Marcus Craig
Institution: The University of Newcastle. Faculty of Business & Law, Newcastle Business School
Description: This paper tests one of DeAngelo and Masulis' hypotheses to predict whether a leverage change will affect the market value of the firm by analyzing the relationship between debt in the capital structure of a company and its valuation on a sample of Indian companies. The results show a mix of both negative and positive correlation between the leverage and valuation variable. However, even in the years with negative correlation, the coefficients are low and the inference is that leverage does have a valuation impact. This conclusion is reinforced by the fact that the firm level time series analysis shows that the majority of the companies in the study have positive correlation.
Relation: Innovation in Management Practices p. 260-266
Relation: Macmillan Advanced Research Series
Relation: http://www.macmillanindia.com/book-details.asp?page=&pagenum=&bookid=3430
Date: 2008
Publisher: Macmillan Publishers India
Keyword(s): India; capital structure; companies; valuation; leverage
Resource Type: book chapter
Identifier: http://hdl.handle.net/1959.13/804687
Identifier: ISBN:9780230637160

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