To Analyze the Capital Structure Theories from Game Theory
Zhao Ying-hui
Abstract
Zhao Ying-hui
Abstract
The capital structure not only affects capital cost and total prices,but also the structure of corporate governance.By using the method of Game Theory,it analyzes five kinds of capital structure theories(MM theory,MM theory in consider of tax,Theory of Trade-offs,Myers's Pecking Order theory and Signaling Game Model) to give explanations to these theories from Game Theory.
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The capital structure not only affects capital cost and total prices,but also the structure of corporate governance.By using the method of Game Theory,it analyzes five kinds of capital structure theories(MM theory,MM theory in consider of tax,Theory of Trade-offs,Myers's Pecking Order theory and Signaling Game Model) to give explanations to these theories from Game Theory.
Key concepts: Pecking order theory, Capital structure, Game theory, Economics, Microeconomics, Capital (architecture), Mathematical economics, Macroeconomics