Unifying Views on Corporate Capital Structure Dynamics: A Research Letter
Published: 2013
Author(s) Name: Paritosh Chandra Sinha, Santanu Kumar Ghosh |
Author(s) Affiliation:
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Abstract
The present paper considers the issue of corporate
strategic financing choices from the dynamic views,
and it puts forwards a unifying view, where the view
logically argues that the issue of financing decision is
a combined choice of the firms’ decision set of “timestate-
focus”. The view theoretically argues that firms’
capital structure decisions are particularly of some
short of reconciliations on the part of the firms between
the propositions of the static trade-off (STO) theory,
the pecking order (PO) theory, the dynamic trade-off
(DTO) theory, and the market timing (MT) theory. The
empirical observations also support the said theoretical
views and thereby confirm the firms’ dynamic behaviors
and provide robust supports in favor of the dynamic
unifying view of firms’ financing choices.
Keywords: Corporate Financing, Dynamic Unifying View, and Reconciliation of Theories.
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