Explore the evidence.
Understand the reach.

The purpose of this paper is to investigate whether there is an optimal capital structure at which point firm is able to maximize its value. The author employ an advanced panel threshold regression estimation developed in 1999 by Hansen that will indicate whether there are positive and negative impacts of capital structure on firm value. The author has used data of among 90 unlisted Seafood Processing Enterprises in the South Central region of Vietnam (SEASCRs) during 2005–2011 period. The author has used book value of equity plus long- term debt (BVE) and return on equity (ROE) as surrogate for firm value and book value of total debt to total assets (TD/TA) as surrogate for capital structure and as the threshold variable. The empirical results strongly indicate that triple threshold effect exists between debt ratio and firm value when BVE is selected to proxy firm value. However, when ROE is selected to proxy firm value, the result shows that there exists double thresholds effect between debt ratio and firm value. From these results, the author  may conclude that the relationship between capital structure and firm value has a nonlinear relationship represents an convex Parapol shape. In addition, the findings suggest implications for SEASCRs on flexible usage of financial leverage. Specifically, SEASCRs should not use loans over 57.39%. To ensure and enhance the firm value, the scope of the optimal debt ratio should be less than 57.39%.

In this paper, the author investigated the influence of management decisions like capital structure, dividend policies, remunerations, credit policy decisions and investment decisions on shareholder wealth maximization. The main objective of this paper is to increase awareness and relationship between management and shareholders of the companies. To achieve the objective, portfolio theory, capital asset pricing model and modern financial theory providing evidence on the linkage between management decisions to shareholder’s value. Shareholders are only concerned about the value of shares of the company and the amount of return in the form of dividend paid. Thus in order to meet the demands of the shareholders of the company, managers needs to increase their abilities and skills to overcome the organizational goals. Thus the main goal of this paper is to discuss on the role of management decisions towards increasing shareholder’s wealth and meet organizational goals.

The purpose of this paper is to investigate whether there is an optimal capital structure at which point firm is able to maximize its value. The author employ an advanced panel threshold regression estimation developed in 1999 by Hansen that will indicate whether there are positive and negative impacts of capital structure on firm value. The author has used data of among 90 unlisted Seafood Processing Enterprises in the South Central region of Vietnam (SEASCRs) during 2005–2011 period. The author has used book value of equity plus long- term debt (BVE) and return on equity (ROE) as surrogate for firm value and book value of total debt to total assets (TD/TA) as surrogate for capital structure and as the threshold variable. The empirical results strongly indicate that triple threshold effect exists between debt ratio and firm value when BVE is selected to proxy firm value. However, when ROE is selected to proxy firm value, the result shows that there exists double thresholds effect between debt ratio and firm value. From these results, the author  may conclude that the relationship between capital structure and firm value has a nonlinear relationship represents an convex Parapol shape. In addition, the findings suggest implications for SEASCRs on flexible usage of financial leverage. Specifically, SEASCRs should not use loans over 57.39%. To ensure and enhance the firm value, the scope of the optimal debt ratio should be less than 57.39%.

In this paper, the author investigated the influence of management decisions like capital structure, dividend policies, remunerations, credit policy decisions and investment decisions on shareholder wealth maximization. The main objective of this paper is to increase awareness and relationship between management and shareholders of the companies. To achieve the objective, portfolio theory, capital asset pricing model and modern financial theory providing evidence on the linkage between management decisions to shareholder’s value. Shareholders are only concerned about the value of shares of the company and the amount of return in the form of dividend paid. Thus in order to meet the demands of the shareholders of the company, managers needs to increase their abilities and skills to overcome the organizational goals. Thus the main goal of this paper is to discuss on the role of management decisions towards increasing shareholder’s wealth and meet organizational goals.