Boeing: surviving business turbulence after black swan cataclysms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Surabhi Gupta ◽  
Nakul Gupta ◽  
Shubham Narayan
Keyword(s):  
Capital Structure ◽  
Corporate Finance ◽  
Corporate Strategy ◽  
Secondary Data ◽  
Structure Theory ◽  
Class Discussion ◽  
Black Swan ◽  
Deep Dive ◽  
Content Type ◽  
Capital Structure Theory

Theoretical basis Capital structure theory. Research methodology The case is meant for teaching and class discussion, and uses only secondary data based on published sources. The interpretation and perspectives presented are based solely on the secondary data. Case overview/synopsis This paper aims to help current and future managers understand capital structure theory and the various equity and debt finance options available for raising capital. It also examines the financial analysis and strategic management of black swan events. After the class discussion, students will understand how to financially and strategically manage a company during black swan events and also have a deep dive into capital structure analysis of a large company. Complexity academic level MBA/postgraduate/undergraduate courses on corporate finance or advanced corporate finance. Executive/management development programs and short duration Massive Open Online Courses on investment decision-making and advanced corporate finance. MBA/postgraduate/undergraduate courses on corporate strategy and economic environment and planning.

Structures of Corporate Finance in Germany and France. A Comparative Analysis for West German and French Incorporated Enterprises / Strukturen der Unternehmensfinanzierung in Deutschland und Frankreich. Eine vergleichende Analyse für westdeutsche und französische Kapitalgesellschaften

2001 ◽  
Vol 221 (5-6) ◽  
Author(s):  
Hans Friderichs ◽  
Bernard Paranque
Keyword(s):  
Capital Structure ◽  
Corporate Finance ◽  
Balance Sheet ◽  
Institutional Factors ◽  
Structure Theory ◽  
Relative Importance ◽  
Corporate Financing ◽  
Capital Structure Theory ◽  
Point Of Departure ◽  
Country Specific

SummaryThe study examines the balance sheet structures of both French and west German incorporated firms in manufacturing and their evolution during the last business cycle in the late eighties and early nineties. The point of departure is to focus op the relative importance of the different financing sources used by the incorporated enterprises in the two countries. A deeper examination of the observed differences suggests that country-specific legal and institutional factors seem to play an important role in determining corporate finance structures. Finally this evidence is considered in the context of capital structure theory with particular reference to the architecture and functioning mechanisms of the corporate financing systems in Germany and France.

Capital Structure Theory and Retention Policy

2011 ◽  
Author(s):  
Tsung-Kang Chen ◽  
Mao-Wei Hung ◽  
Hsien-Hsing Liao ◽  
Ju-Fang Yen
Keyword(s):  
Capital Structure ◽  
Structure Theory ◽  
Retention Policy ◽  
Capital Structure Theory

Research on capital structure determinants: a review and future directions

2017 ◽  
Vol 13 (2) ◽  
pp. 106-132 ◽  
Author(s):  
Satish Kumar ◽  
Sisira Colombage ◽  
Purnima Rao
Keyword(s):  
Capital Structure ◽  
Meta Analysis ◽  
Empirical Studies ◽  
Secondary Data ◽  
Theoretical Models ◽  
Order Theory ◽  
Organizational Level ◽  
Future Research ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to study the status of studies on capital structure determinants in the past 40 years. This paper highlights the major gaps in the literature on determinants of capital structure and also aims to raise specific questions for future research. Design/methodology/approach The prominence of research is assessed by studying the year of publication and region, level of economic development, firm size, data collection methods, data analysis techniques and theoretical models of capital structure from the selected papers. The review is based on 167 papers published from 1972 to 2013 in various peer-reviewed journals. The relationship of determinants of capital structure is analyzed with the help of meta-analysis. Findings Major findings show an increase of interest in research on determinants of capital structure of the firms located in emerging markets. However, it is observed that these regions are still under-examined which provides more scope for research both empirical and survey-based studies. Majority of research studies are conducted on large-sized firms by using secondary data and regression-based models for the analysis, whereas studies on small-sized firms are very meager. As majority of the research papers are written only at the organizational level, the impact of leverage on various industries is yet to be examined. The review highlights the major determinants of capital structure and their relationship with leverage. It also reveals the dominance of pecking order theory in explaining capital structure of firms theoretically as well as statistically. Originality/value The paper covers a considerable period of time (1972-2013). Among very few review papers on capital structure research, to the best of authors’ knowledge; this is the first review to identify what is missing in the literature on the determinants of capital structure while offering recommendations for future studies. It also synthesize the findings of empirical studies on determinants of capital structure statistically.

“Peer effects” in capital structure decision of Chinese firms-empirical investigation based on Chinese a-share listed firms

2018 ◽  
Vol 9 (3) ◽  
pp. 289-315 ◽  
Author(s):  
Tianli Zhong ◽  
Tianyu Zhang
Keyword(s):  
Capital Structure ◽  
Peer Effects ◽  
Management Practices ◽  
Structure Theory ◽  
Outcome Variable ◽  
Content Type ◽  
Financial Decisions ◽  
Listed Firms ◽  
Social Multiplier ◽  
Peer Firms

Purpose The purpose of this paper is to identify if peer firms’ capital structure decision plays a role in determining focal firms’ capital structure decision, despite the fact that correlated effects can also lead to co-movement of financing behavior among firms from the same industry (i.e. industry-specific capital structure). Design/methodology/approach Instead of using relative measurement (of individual outcome variable over industry variable) as in previous work, this paper borrows the linear-in-means model and, after controlling for potential endogeneity problems, directly identifies the existence of peer effects with coefficient estimation. To deal with correlated effects, additional empirical investigations such as test of heterogeneity in direction and scale, social multiplier identification test and instrumental regression test based on another instrumental variable (that is less influenced by correlated effects) are performed. Findings Using data from Chinese listed firms, this paper, for the first time, identifies the presence of peer effects in capital structure and debt maturity decision. Further investigations show that first, focal firms react asymmetrically to peer firms’ debt adjustment of different direction and scale. Second, social multiplier, a unique attribute of peer effects, is identified in the leverage choices. Third, the significant correlation of capital structure decision remains even if we use another “correlated effects-immune” instrument. All these results point to the fact that peer effects, rather than correlated effects, play a significant role in determining capital structure. Practical implications The empirical results of this paper provide strong evidence that firms, driven by motivations such as either learning or competition, will actively react to peers’ financial decisions. As the bridge between individual firms and the industry, social multiplier can be fully taken advantage of to induce positive spillover of good management practices and prohibit inefficient decisions from spreading. Originality/value This paper theoretically and empirically introduces peer effects – a well-acknowledged social concept – into capital structure decision of Chinese listed firms, thus both complementing the traditional capital structure theory and providing an empirical paradigm for peer effects research.

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