1.
Paritosh Chandra Sinha
– Paritosh Sinha Belongs To Rabindra Mahavidyalaya
2.
Santanu Kumar Ghosh
– Prof. Santanu Belongs To Univ. Of Burdwan, India
Abstract
In the Literature of Corporate Finance, an inclusive
theory unifying the modern capital structure theories
is pending as yet. A comprehensive theory considers
“time-state-focus” choices over time. Firms’
comprehensive capital structure choices need some
reconciliation of their different tracks of financing. On
reconciliation of the choices in the static trade-off (STO)
track, the pecking order (PO) track, and the dynamic
trade-off (DTO) track at presence of upper and lower
recapitalization boundaries, and the limits of adjustment
costs, we theoretically extend the 2nd proposition of
Sinha and Ghosh (2012) (read with Sinha and Ghosh,
2013a) with three innovative corollaries. The empirical
observations with reference to a large sample of Indian
non-banking firms’ financing data over 10 years’ study
period of 1997-98 to 2006-07 show unique findings in
support of the corollaries.
Keywords Corporate Capital Structure Theories, Dynamic Choice References, Recapitalization Boundaries, Adjustment Costs, Reconciliatory Views
