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New Developments on the Modigliani-Miller Theorem

hal.structure.identifier
dc.contributor.authorAboura, Sofiane*
hal.structure.identifier
dc.contributor.authorLépinette, Emmanuel*
dc.date.accessioned2015-03-02T08:54:02Z
dc.date.available2015-03-02T08:54:02Z
dc.date.issued2017
dc.identifier.issn0040-585X
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/14729
dc.language.isoenen
dc.subjectRegulation
dc.subjectLeverage
dc.subjectAbsence of arbitrage opportunity
dc.subjectBanks
dc.subjectModigliani-Miller
dc.subject.ddc332en
dc.subject.classificationjelG3en
dc.subject.classificationjelG21en
dc.subject.classificationjelG28en
dc.titleNew Developments on the Modigliani-Miller Theorem
dc.typeArticle accepté pour publication ou publié
dc.description.abstractenThe seminal Modigliani-Miller (1958) theorem is a cornerstone of corporate finance theory. It provides conditions under which changes in a firm’s capital structure do not affect its fundamental value. A recent controversial debate around the relevancy of the Modigliani-Miller theorem regarding the banking sector has been raised since the 2008 financial crisis. In this paper, we provide an overview of the theorem with recent developments when considering several extensions of the initial model. We reformulate the Modigliani-Miller theorem under a Markowitz perspective. Under this approach, we consider the case of implicit government guarantees offered to banks. Our main result shows that a bank does not satisfy the Modigliani-Miller theorem, precisely banks will favor leverage instead of equity.
dc.relation.isversionofjnlnameTheory of Probability and Its Applications
dc.relation.isversionofjnlvol61
dc.relation.isversionofjnlissue1
dc.relation.isversionofjnldate2017
dc.relation.isversionofjnlpages3-14
dc.relation.isversionofdoi10.1137/S0040585X97T988010
dc.identifier.urlsitehttp://dx.doi.org/10.2139/ssrn.2569078
dc.relation.isversionofjnlpublisherSIAM
dc.subject.ddclabelEconomie financièreen
dc.description.submittednonen
dc.description.ssrncandidatenon
dc.description.halcandidateoui
dc.description.readershiprecherche
dc.description.audienceInternational
dc.relation.Isversionofjnlpeerreviewedoui
dc.date.updated2017-03-22T14:40:07Z
hal.author.functionaut
hal.author.functionaut


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