Capital market vs. Banking oriented Systems: Influences on Corporate Strategy and Corporate Finance Rudolf Volkart Professor in Corporate Finance, Director Swiss Banking Institute, University of Zurich Agenda - Introducing remarks - System-related aspects, and tendencies
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Professor in Corporate Finance, DirectorSwiss Banking Institute, University of Zurich
Swiss Banking Institute
University of Zurich
- Introducing remarks
- System-related aspects, and tendencies
- „Shared values“ by market players
- Investment & financing decisions
- Financial structure: theory and practice
- Further implications from CMOS and BOS
- So what?
„We survey managers in 16 European countries on the determinants of capital structure across countries. Financial flexibility and earnings per share dilution are the primary concerns of European managers (…). Managers also value hedging considerations and use window of opportunity in raising capital. European managerial views are largely similar to that of the U.S. managers reported in Graham and Harvey (2001) and the evidence provides modest support for the trade-off and the pecking-order theories of capital structure. …”
„… However, there is substantial variation in managerial views across European countries. Our cross-section analysis supports that both legal and institutional factors influence managerial views, although sensitivity to these factors varies widely (…). Our evidence suggests that capital structure choice in each country may be the result of a complex interaction of many institutional features including its legal environment.”
[Bancel, F./Mittoo, U. R.: The Determinants of Capital Structure Choice: A Survey of European Firms, Working Paper (2003), http://126.96.36.199/Denver/Papers/FranckBancelPaper.pdf - 15.2.2006]