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dc.contributor.authorKassidova, Sophia-
dc.date.accessioned2018-07-16T17:10:57Z-
dc.date.available2018-07-16T17:10:57Z-
dc.date.issued2016-
dc.identifier.citationKassidova, 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.issn23817356-
dc.identifier.urihttps://www.um.edu.mt/library/oar//handle/123456789/31761-
dc.description.abstractThis 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.isoenen_GB
dc.publisherEleftherios Thalassinosen_GB
dc.rightsinfo:eu-repo/semantics/openAccessen_GB
dc.subjectBank capital -- Bulgariaen_GB
dc.subjectEquity -- Bulgariaen_GB
dc.subjectAsset requirements -- Bulgariaen_GB
dc.subjectBanks and banking -- Bulgariaen_GB
dc.subjectBank failures -- Prevention -- Bulgariaen_GB
dc.subjectFinancial crises -- Preventionen_GB
dc.titleCapital change and the cost of equity : evidence from Bulgarian banks. Is there a Modigliani-Miller offset?en_GB
dc.typearticleen_GB
dc.rights.holderThe 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.reviewedpeer-revieweden_GB
dc.publication.titleInternational Journal of Economics & Business Administrationen_GB
Appears in Collections:IJEBA, Volume 4, Issue 3

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