[2015년 제 4차] Dynamic Capital Structure of Value and Growth Firms
작성자 : 관리자
조회수 : 911
게시일 :
2015-12-30
This paper develops the dynamic equilibrium model of capital structure and investment decisions of value and growth rms. Although Q ratio monotonically increases with the share of growth options in total firm value, it is yet to be a perfect proxy of growth options since Q ratio is also affected by a firm's production technology. Capitalintensive firms not only have higher returns from investments and thus larger growth options but also likely have invested in more capital in the past. Thus, capital-intensive firms may have lower Q ratio even when they have higher growth options. Understanding the intra- and inter-firm variations of Q ratio can explain why leverage and profitability are important determinants of investment policy. The simulation also assures that the model can successfully match the moments of riskfree interest rates, stock market excess returns, value premium and credit spreads.