_-融资与资本结构理论.pptVIP

The Theories of Medium/Long-term Financing Decision Capital Structure －Utilize capital markets to finance investment and create value 一. Financing Instruments Equity financing instruments －Venture capital －Common Stock －Option-linked equity: Puttable common stock 一. Financing Instruments Debt －Bank loan －Private debt －Public bonds －Fixed versus floating rate －Option-linked bonds: Puttable versus callable －Income bonds Debt Financing Instruments Advantages of debt 1. Tax Benefit Higher tax rates－Higher tax benefit Disadvantages of debt 1.Bankruptcy Cost: Higher business risk－ Higher cost 2. Loss of future financing flexibility Bonds Financing Instruments Bonds Debenture －Rating: AAA－C －Sinking fund －Call or put right －Restrict on Investment, Financing and operation 一. Financing Instruments Hybrid financing instruments －Preferred stock －Convertible instruments －Warrants 二. Capital Structure Theories Financial Market Efficiency Definition: A financial market is efficient when market price reflect all available information. “All available information ”includes: 1. Past price 2. All public information 3. All information including non-public (inside) information Financial Market Efficiency “ Prices reflect all available information ” means that financial transactions at market price,using the available information are zero NPV activities Financial Market Efficiency Stock price Financial Market Efficiency Weak form: Past price do not predict future price changes Semi-strong form: All public information does not predict future price changes Strong form: All information, public and private,does not predict future price changes New Finance: overreaction and underreaction －Events reaction study IPO underpricing 二. Capital Structure Theories What do the theory Concern －What are the factors that affect the determinants of financing choice/options/actions ? －Who are the actors ? Complementary Research Methodologies － Mathematical Models,