Capital Structure and Expected Rate of Return of Equity

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Other Title
  • 資本構成と株式リターン
  • シホン コウセイ ト カブシキ リターン

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Description

Capital structures of firms are closely related to the expected return of their equities. We study the optimal capital structure model and show that Berk's size effect may not be observed for leveraged firms. It follows that the often-used Fama-French factors correspond well to the relation between the capital structure and the expected return of equity. Some of these theoretical predictions are confirmed using Japanese stock market data.

Journal

  • 経済研究

    経済研究 58 (3), 217-230, 2007-07-25

    岩波書店

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