Discovery Projects - Grant ID: DP0663048

Funding Activity

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Funded Activity Summary

Capital Management in a Stochastic Earnings Framework. Many large Australian firms have on-going capital management programs. These programs are aimed at ensuring that the firm maintains an optimal capital structure. This is often done according to rules of thumb or benchmarked against a few financial ratios. To the extent that more rigor can be introduced into the analysis of optimal capital structure, there is a clear benefit to Australian firms. Of course, the reason firms engage in capital management initiatives in the first place is to lower their cost of capital and to increase value. Any initiative that lowers the cost of capital of Australian firms will result in increased productivity and economic growth.

Funded Activity Details

Start Date: 01-01-2006

End Date: 30-09-2010

Funding Scheme: Discovery Projects

Funding Amount: $270,000.00

Funder: Australian Research Council