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Determining the optimal capital structure based on revised definitions of tax shield and bankruptcy cost

Abstract

For half a century, no consensus has been reached on optimal capital structure after numerous intensive studies. This paper develops three alternative simple models to derive optimal capital structure. Because the optimal leverage ratio determined by the models is close to most survey data, some relevant puzzles, such as “financial conservatism”, are easily explained. In addition, the new models can be extended to accommodate various decision situations, for instance, abnormal growth, bankrupt expectancy, debt guarantee, transaction cost, and personal income tax.

摘要

经过半个世纪的研究努力, 最优资本结构问题依然未得到解决。 通过修正节税收益和破产成本的概念, 并通过实物期权定价技术对这两者进行了重新计量, 进而建立了确定最优资本结构的ZZ 杠杆模型。 将自变量的典型值代入模型得出的最优债务比率与世界范围内的实际调查数据基本吻合, 从而一些长期难以解释的“资本结构之谜”, 如“财务保守行为”等, 可以得到解决。 而且ZZ 杠杆模型可以通过简单调整, 方便地适应多种决策情况, 包括公司存在超常增长、 破产预期、 债务担保、 融资交易费用以及股权收益和债权收益的个人所得税差异等。

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Correspondence to Zhiqiang Zhang.

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Zhang, Z. Determining the optimal capital structure based on revised definitions of tax shield and bankruptcy cost. Front. Bus. Res. China 3, 120 (2009). https://doi.org/10.1007/s11782-009-0007-1

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Keywords

  • MM model
  • trade-off theory
  • tax shield
  • bankruptcy cost
  • ZZ leverage model

关键词

  • MM 模型
  • 权衡理论
  • 节税收益
  • 破产成本
  • ZZ 杠杆模型