Business, Management and Accounting
5 years ago

Corporate spin-offs in US prioritize weighing debt costs for capital structure decisions.

Research Journal of Finance and Accounting
An Empirical Investigation of Capital Structure in US Corporate Spinoffs
Tahsina Haque Simu

Paper Summary

Related papers

Business, Management and Accounting
3 years ago

Poland's firms shift to more debt, less country influence in financing.

Corporate Governance
Working Capital
Value-based Management
2 views
Economics, Econometrics and Finance
4 years ago

Large firms rely on debt, small firms on equity for big projects

Real Options
Corporate Governance
Monetary Models
3 views
Business, Management and Accounting
7 years ago

Survey reveals SMEs in Europe follow target debt levels for financing decisions.

Corporate Governance
2 views

The article investigates how companies decide on their debt levels during a spin-off compared to regular firms. The study looks at spin-offs in the US from 1992 to 2016 and tests two theories about capital structure. The results show that companies consider the costs and benefits of debt when making these decisions. This study provides insights into how firms manage their debt during spin-offs, which can differ from their usual practices.