Impact Of Financial Crisis On The Capital Structure Decision Making Of The Firm - Essay Example

Only on StudentShare

Extract of sample
Impact Of Financial Crisis On The Capital Structure Decision Making Of The Firm

The underlying discussion has developed the reference from the literature related to the capital structure theories and the brief about the financial crisis of late 2000s. The discussion also addresses the firms’ response to the financial crisis by adjusting mix of the capital structure. Therefore, for clear assessment along with overall global assessment, capital structure adjustments of Tesco and Dell have been discussed in the report. The report also has presented alignment of the responses of the capital structures with theories. FINANCIAL CRISIS Financial crisis have always been the dominant factor for determining trends and practices in the economic scenario. A financial crisis traces the reasoning from the excessive loans such as sub-prime mortgages as well as financial instrument of debt derived from such loans (Mizen 2008). Crisis originated from US in late 2000s spread across Europe and then to world owing to the benefit of diversification that businesses attempted to gain from spreading risk across local and international markets (Fosberg, 2010). First strong hit from financial crisis and its intensity was revealed in late 2007 upon the Bear Stearns’ declaration about evaporation of the value of major assets held by Bear Stearns’s hedge funds. ...Show more

Summary

IMPACT OF FINANCIAL CRISIS ON THE CAPITAL STRUCTURE DECISION MAKING OF THE FIRM INTRODUCTION Capital structure of the firm is a dynamic decision and this decision faces impact from large number of factors (Miglo, 2010). Accounting for the wide variety of factors both internally and externally, firms’ capital structure responds to changing dynamics…
Author : quitzonmargaret
Impact Of Financial Crisis On The Capital Structure Decision Making Of The Firm essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Impact Of Financial Crisis On The Capital Structure Decision Making Of The Firm"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Deregulation and Capital Control
The first section of the paper will address the role of financial deregulation and capital control in international diversification. The next section will offer a discussion the two major drivers of financial i.e. technology and innovation in global financial market and it will be followed by a description and mechanism of carry trade strategy.
13 pages (3250 words) Essay
The Global Financial Crisis: Impact on Property Markets in the UK
......... 2 1.0 Introduction …........................................................................................................................ 7 1.1 Hypothesis ………………………………………………………………...…......…..
38 pages (9500 words) Essay
Risk Management and Policy Decision-Making
4 4.0 Risk management; steps and processes that would have averted the problem… 10 5.0 Assessments “The Black Swan”……………………………………………. 12 1.0. Introduction Kerzner defines risk management as the “act or practice of dealing with risks”.
12 pages (3000 words) Essay
Analysis capital structure of saudi companies
A firm may be capitalized by several methods, which are generally divided into equity (ownership) and debt (borrowings). In conventional finance, these alternatives are generally decided upon based on considerations that are internal to the firm (dividend payout and capital costs) and external to the firm (economic, political, and regulatory considerations).
4 pages (1000 words) Essay
2008 Financial Crisis - Analysis Of Causes And Implications
The global economy was hit by a series of financial crises that, like a volcano, started erupting on August 9, 2007. For many years, business and economic factors have converged to this point, which is why this crisis had several causes that could not be reduced to a single individual, institution, nation-state or financial instrument.
13 pages (3250 words) Essay
Financial Decision Taking
By putting forward selected theoretical models of financial strategy, the essay discusses their relevance to an organization's efforts to attain financial and operational viability. For this purpose, the essay picks out one of the Tenant Management Offices (TMOs) in London as case study for the simple reason that we are familiar with some aspects of this organization.
14 pages (3500 words) Essay
An Empirical study of determinants of capital structure of non-financial companies in Egypt before and after the financial crisis
Similarly, the economy of countries like Russia has also been affected and Government intervention prevented the further decline in economic activity. This indicates that the cross border affect of the
11 pages (2750 words) Essay
Ownership structure and Firm performance: evidence from GCC countries
Ordinary least square (OLS) with fixed effects panel models are employed. The analysis is done using two measures of performance including return on assets (ROA) and Tobin’s Q. The impact of firm specific variables such
2 pages (500 words) Essay
Capital Investment decision making
The organization has also realized that most health insurers are requesting that physicians first refer patients to therapists with an aim of reducing medical costs. The target department, within the organization,
1 pages (250 words) Essay
Impact of capital structure on financial performance of real estate firms listed in Chinese
The industry has a huge multiplier and hence it is quite important in financial and banking businesses. Real estate industry has
4 pages (1000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT