Corporate capital structure in the United Kingdom
Subtitle: determinants and adjustment
By: by Philip Bunn and Garry Young.
Contributors: Young, Garry.; Bank of England.
Series: Working paper,; no. 226; Working paper (Bank of England : Online) ;; no.226.
Publisher: Bank of England
Published: 2004
Place of publication: London
Language: eng
Format: Electronic resource
Subjects: Capital -- Great Britain.
Description: "In this paper three contributions are made. First, empirical support is provided for the 'trade-off' model of corporate capital structure where companies borrow to take advantage of the tax benefits of debt, which they set against possible costs of overindebtedness. Second, it is shown empirically how companies adjust their balance sheets when borrowing is out of equilibrium, through adjustments to dividend payments, new equity issues and to a lesser extent capital investment. Third, these factors are incorporated within an aggregate model that quantifies the process and speed of balance sheet adjustment in the economy as a whole"--Bank of England web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 4/12/2005.
Also available in print.
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Mode of access: World Wide Web.