曼彻斯特大学：高级公司金融学：资本结构 IIppt课件.ppt

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1、BMAN30111AdvancedCorporateFinanceCapitalStructureIIMaria-TeresaMarchicaVietAnhDangMBSAccountingandFinanceReviewofCapitalStructureIMM’spropositions:MM’s(1958)irrelevancepropositions.MM’s(1963)‘corrected’propositionwithcorporatetaxes,i.e.,firmsshouldbefinancedwith100%debt.Miller’s(1977)model:Withboth

2、corporateandpersonaltaxes,capitalstructureisirrelevant.However,thetaxsystemhaschangedsincethe1970sandthereexistnon-debttaxshields.The“low-leverage”puzzle.2OverviewofCapitalStructureIIFinancialdistressandbankruptcycostsThe(static)trade-offtheory(TOT)Asymmetricinformationandthepeckingordertheory(POT)E

3、mpiricalevidenceonthetrade-offandpeckingordertheoriesNumericalIllustrationofthepeckingordermodelWorkshop1onthePOT3DefaultandBankruptcyinaPerfectCapitalMarketFinancialdistressorbankruptcy(default).DoesbankruptcyaffectMM’spropositionsIandII?MM’sirrelevancetheoremcontinuestoholdwithriskydebtandcostles

4、sbankruptcy:Limitedliabilityandnodistress/bankruptcycosts.Costlesstransferofownershipandcontrolofthefirm’sassetsfromshareholderstodebt-holders.4CostofCapital,DefaultandBankruptcyinaPerfectCapitalMarketMM’sPropositionIIwithrisklessdebt:rd=rfAs(D/E)increases,equitybecomesriskier,andreincreasestocompen

5、satetheshareholders.MM’sPropositionIIwithriskydebt:rd>rfAs(D/E)increases,debtbecomesriskiertoo,andrdrisestocompensatethedebt-holdersTherateofgrowthinreslowsdown,andrWACCremainsunchanged.5CostofCapitalwithRiskyDebtbutCostlessFinancialDistressrrWACCrdD/ErURiskyDRisklessDSource:BrealeyandMyers(2002)6Fi

6、nancialDistressandBankruptcyCostsBankruptcyisthelegalprocesstoreorganisethefinancialclaimsinsidethefirmandtransfercorporateownership.Bankruptcyisacostlyandtime-consumingprocess.Costsoffinancialdistressandbankruptcy:DirectcostsIndirectcosts7DirectCostsofBankruptcyIncurredtofacilitateanorderlybankrupt

7、cyprocess.Mainlyincludecostlyprofessionalfees.Averagedirectcostsrepresent38%ofthepre-bankruptcymarketvalue,e.g.Warner(1977),Weiss(1990)andBrisetal.(2006).Higherforfirmswithmorecomplicatedoperationsor