Corporate Capital Structure and Firm Value: A Panel Data Evidence from Australia's Dividend Imputation Tax System

Abu Taher Mollik
Additional contact information
Abu Taher Mollik: University of South Australia, Australia

Chapter 11 in Advances in Quantitative Analysis of Finance and Accounting, 2008, pp 205-237 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThis chapter examines the empirical effects of financial leverage (FL) (corporate capital structure) on the market value of a selection of firms listed on the Australian Stock Exchange, developing a direct value-leverage model. Employing a least square dummy variable method to a pooled time-series and cross-sectional data set, the results suggest that the value of a firm rises significantly with FL. More specifically, there is a statistically significant positive effect of total, total interest bearing, and long-term FL on the market value of a firm, suggesting that leverage matters even under the Australia's (full) dividend imputation tax system.

Keywords: Hedging Strategies; Expense Mismatching; Stock Split; Trading Volume; Portfolio Optimization; Intraday Patterns; Earnings Management; International Winner-Loser Effect (search for similar items in EconPapers)
JEL-codes: G2 G3 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789812791696_0011 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789812791696_0011 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789812791696_0011

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().