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DC Field | Value | Language |
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dc.contributor.author | Kassidova, Sophia | - |
dc.date.accessioned | 2018-07-16T17:10:57Z | - |
dc.date.available | 2018-07-16T17:10:57Z | - |
dc.date.issued | 2016 | - |
dc.identifier.citation | Kassidova, S. (2016). Capital change and the cost of equity : evidence from Bulgarian banks. Is there a Modigliani-Miller offset? International Journal of Economics & Business Administration, 4(3), 47-59. | en_GB |
dc.identifier.issn | 23817356 | - |
dc.identifier.uri | https://www.um.edu.mt/library/oar//handle/123456789/31761 | - |
dc.description.abstract | This paper studies the cost of equity and capital of three Bulgarian listed banks in the framework of the Modigliani-Miller (MM) theory of capital structure. It measures the impact of an increase in capital ratios on the equity risk (equity beta) of these banks. It finds that, historically, while more equity results in lower banks’ systematic risk no causal relationship can be found between an increase in capital ratios and the predicted by the theory decrease in banks’ systematic risk. MM irrelevance argument holds that a decrease in equity risk will lead to a decrease in the shareholders’ required (and expected) return on equity and thus offsetting the higher equity (capital) level. Thus, the results cannot find evidence in support of the so-called “Modigliani-Miller” offset. | en_GB |
dc.language.iso | en | en_GB |
dc.publisher | Eleftherios Thalassinos | en_GB |
dc.rights | info:eu-repo/semantics/openAccess | en_GB |
dc.subject | Bank capital -- Bulgaria | en_GB |
dc.subject | Equity -- Bulgaria | en_GB |
dc.subject | Asset requirements -- Bulgaria | en_GB |
dc.subject | Banks and banking -- Bulgaria | en_GB |
dc.subject | Bank failures -- Prevention -- Bulgaria | en_GB |
dc.subject | Financial crises -- Prevention | en_GB |
dc.title | Capital change and the cost of equity : evidence from Bulgarian banks. Is there a Modigliani-Miller offset? | en_GB |
dc.type | article | en_GB |
dc.rights.holder | The copyright of this work belongs to the author(s)/publisher. The rights of this work are as defined by the appropriate Copyright Legislation or as modified by any successive legislation. Users may access this work and can make use of the information contained in accordance with the Copyright Legislation provided that the author must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the prior permission of the copyright holder. | en_GB |
dc.description.reviewed | peer-reviewed | en_GB |
dc.publication.title | International Journal of Economics & Business Administration | en_GB |
Appears in Collections: | IJEBA, Volume 4, Issue 3 |
Files in This Item:
File | Description | Size | Format | |
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Capital_change_and_the_cost_of_equity_evidence_from_Bulgarian_banks_2016.pdf | 812.95 kB | Adobe PDF | View/Open |
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