公司治理对资本结构和企业价值关系的影响毕业论文外文翻译.doc

The influence of corporate governance on the relationbetween capital structure and value Capital structure: relation with corporate value and main research streams When looking at the most important theoretical contributions on the relation between capital structure and value, as illustrated in Figure 1，it becomes immediately evident that there is a substantial difference between the early theories and the more recent ones. Modigliani and Miller (1958)，who had originally asserted that there was no relationship between capital structure and value ; in 1963，instead，reached the paradoxical and provocative conclusion that a maximum level of debt would mean a maximum level of firm value，due to the fact that interest is tax deductible . Many later contributions pointed out that this effect is compensated when considering personal taxes (Miller，1977),an eventual lack of tax capacity，due to the presence of economic loss，the effect of other types of tax shields (De Angelo and Masulis，1980)， as well as the introduction of the costs(direct and indirect) of financial distress; all these situations end up creating a trade-off between debt costs and benefits. Point L’ in Figure lc indicates an optimal level of debt,beyond which any rise in leverage would cause an increase in the benefits of debt that would be less than proportional with respect to the costs of financial distress. Furthermore，this non monotonic relation would be modified even more when considering agency costs as well as the costs of financial distress . Finally，one last stream of research (Myers，1984，Myers 1984) points out managerial preferences when choosing financing resources . In this case no optimal level of debt becomes “objectively” evident，but this is due to the various situations the manager had to deal with over time. The function of managerial preference has particular relevance due to information asymmetries，therefore the level of firm indebtedness will be determined by the tangent between the firm v