Empirical analysis and optimization of capital structure adjustment

This paper analyzes capital structure's characteristics and presents its simplified mathematical model. Panel data analysis shows that the listed companies prefer equity financing rather than debt financing. Furthermore, we propose a capital structure optimization model with uncertain equity fi...

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Main Authors: Ma, J., Xu, Honglei
Format: Journal Article
Language:English
Published: AMER INST MATHEMATICAL SCIENCES-AIMS 2020
Subjects:
Online Access:http://purl.org/au-research/grants/arc/DP160102819
http://hdl.handle.net/20.500.11937/90938
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author Ma, J.
Xu, Honglei
author_facet Ma, J.
Xu, Honglei
author_sort Ma, J.
building Curtin Institutional Repository
collection Online Access
description This paper analyzes capital structure's characteristics and presents its simplified mathematical model. Panel data analysis shows that the listed companies prefer equity financing rather than debt financing. Furthermore, we propose a capital structure optimization model with uncertain equity financing constraints. We formulate the capital structure optimization problem as a two-stage stochastic optimization problem and solve it. Finally, numerical examples show that our optimization approach can improve the statistics result of capital structure adjustment.
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format Journal Article
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institution Curtin University Malaysia
institution_category Local University
language English
last_indexed 2025-11-14T11:35:42Z
publishDate 2020
publisher AMER INST MATHEMATICAL SCIENCES-AIMS
recordtype eprints
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spelling curtin-20.500.11937-909382023-05-11T01:52:20Z Empirical analysis and optimization of capital structure adjustment Ma, J. Xu, Honglei Science & Technology Technology Physical Sciences Engineering, Multidisciplinary Operations Research & Management Science Mathematics, Interdisciplinary Applications Engineering Mathematics Target capital structure institutional ownership capital structure optimization two-stage stochastic optimization ALGORITHM This paper analyzes capital structure's characteristics and presents its simplified mathematical model. Panel data analysis shows that the listed companies prefer equity financing rather than debt financing. Furthermore, we propose a capital structure optimization model with uncertain equity financing constraints. We formulate the capital structure optimization problem as a two-stage stochastic optimization problem and solve it. Finally, numerical examples show that our optimization approach can improve the statistics result of capital structure adjustment. 2020 Journal Article http://hdl.handle.net/20.500.11937/90938 10.3934/JIMO.2018191 English http://purl.org/au-research/grants/arc/DP160102819 AMER INST MATHEMATICAL SCIENCES-AIMS restricted
spellingShingle Science & Technology
Technology
Physical Sciences
Engineering, Multidisciplinary
Operations Research & Management Science
Mathematics, Interdisciplinary Applications
Engineering
Mathematics
Target capital structure
institutional ownership
capital structure optimization
two-stage stochastic optimization
ALGORITHM
Ma, J.
Xu, Honglei
Empirical analysis and optimization of capital structure adjustment
title Empirical analysis and optimization of capital structure adjustment
title_full Empirical analysis and optimization of capital structure adjustment
title_fullStr Empirical analysis and optimization of capital structure adjustment
title_full_unstemmed Empirical analysis and optimization of capital structure adjustment
title_short Empirical analysis and optimization of capital structure adjustment
title_sort empirical analysis and optimization of capital structure adjustment
topic Science & Technology
Technology
Physical Sciences
Engineering, Multidisciplinary
Operations Research & Management Science
Mathematics, Interdisciplinary Applications
Engineering
Mathematics
Target capital structure
institutional ownership
capital structure optimization
two-stage stochastic optimization
ALGORITHM
url http://purl.org/au-research/grants/arc/DP160102819
http://hdl.handle.net/20.500.11937/90938