|
|
Article: The market value of debt, market versus book value of debt, and returns of assets. (includes appendices)
- Article from:
- Financial Management
- Article date:
- March 22, 1997
- Author:
CopyrightCOPYRIGHT 1997 Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Empirical research typically relies on book rather than market value of debt, though theory is virtually always in terms of market values. This paper documents how book value measurements of debt distort debt-equity ratios and cost of capital calculations. We focus on three key issues. First, mismeasurement can influence cross-sectional studies of capital structure, though the errors introduced may not be important because the cross-sectional correlation is very high each month between book and market-based measures. Second, mismeasurement can influence time-series studies of capital structure; this influence can be quite important. Third, mismeasurement can importantly ...
Related newspaper, magazine, and journal articles:
|
|
Article: EGYPT: MARKET VALUE OF FOREIGN DEBTS LESS ...
IPR Strategic Business Information Database;
February 24, 2000 ;
498 words
... ... Botrous Ghali, stated that the market value of Egypt's external debt does not exceed $18 billion, since the majority of these debts are in the form of long-term ... book value of these foreign debts amounts to $28 billion. The ...
|
|