現代企業資本結構--債務的運用(ppt 28頁)

現代企業資本結構--債務的運用目錄：
1、Costs of Financial Distress
2、Description of Costs
3、Can Costs of Debt Be Reduced?
4、Integration of Tax Effects and Financial Distress Costs
5、Shirking, Perquisites, and Bad Investments: A Note on Agency Cost of Equity
6、The Pecking-Order Theory
7、Growth and the Debt-Equity Ratio
8、Personal Taxes
9、How Firms Establish Capital Structure
10、Summary and Conclusions

現代企業資本結構--債務的運用內容提要：
Protective Covenants
Agreements to protect bondholders
Negative covenant: Thou shalt not:
Pay dividends beyond specified amount.
Sell more senior debt & amount of new debt is limited.
Refund existing bond issue with new bonds paying lower interest rate.
Buy another company’s bonds.
Positive covenant: Thou shall:
Use proceeds from sale of assets for other assets.
Allow redemption in event of merger or spinoff.
Maintain good condition of assets.
Provide audited financial information.
Shirking, Perquisites, and Bad Investments: The Agency Cost of Equity
An individual will work harder for a firm if he is one of the owners than if he is one of the “hired help”.
Who bears the burden of these agency costs?
While managers may have motive to partake in perquisites, they also need opportunity. Free cash flow provides this opportunity.
The free cash flow hypothesis says that an increase in dividends should benefit the stockholders by reducing the ability of managers to pursue wasteful activities.
The free cash flow hypothesis also argues that an increase in debt will reduce the ability of managers to pursue wasteful activities more effectively than dividend increases.

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