Title :
Statistical analysis of the influence of capital structure on stock price
Author :
Kawai, Takaaki ; Tsuda, Hiroyuki
Author_Institution :
Dept. of Math. Sci., Doshisha Univ., Kyotanabe, Japan
Abstract :
This paper estimates how the capital structure of a company influences its stock price. To raise corporate valuation, which is better for the company, using equity capital or liabilities? To answer this question, we estimated the optimal amount of liabilities in terms of tax benefit. Then we analyzed how the gap between the optimal amount and the actual amount of liabilities influences stock price.
Keywords :
cost accounting; pricing; statistical analysis; stock markets; capital structure; corporate valuation; equity capital; liabilities; statistical analysis; stock price; tax benefit; Companies; Educational institutions; Finance; Indexes; Regression analysis; Stock markets; capital structure; time series analysis;
Conference_Titel :
Computational Intelligence and Applications (IWCIA), 2014 IEEE 7th International Workshop on
Conference_Location :
Hiroshima
Print_ISBN :
978-1-4799-4771-3
DOI :
10.1109/IWCIA.2014.6988099