UK Campus
Business School Research

Shen Hwee Chua

B.Acc Hons (Nanyang Technological University, Singapore), MSc Banking and Finance(Loughborough)

Room: C4/5 DB
Tel: +44 (0) 115 8231404

Current Status: Completed
Year of Registration: 2008
Expected Completion Date: /01/2011

Primary Funding Source:
Business School Scholarship

Research Topic:
Cash Holdings, Capital Structure and Financial Flexibility

Research Details:
It has been half a century after the significant work by Modigliani and Miller (1958), and there is still no universal theory of debt-equity choice for both practitioners and academicians to use in practice. Conditional theories of capital structure have been proven to co-exist and the mixed evidence on these theories suggests that no one of them could be the only theory for capital structure.

I seek to derive a theoretical model that combines various conditional theories of capital structure. The model will present a new theoretical-based framework not only to derive the optimal range of leverage for firms, but to combine the learning of financing policies made by firms to remain in the optimal leverage range where firm value is maximized. The ultimate model should be applicable to both practitioners and academicians in their investigation of debt-equity choice.

Research Supervisor/s: David Newton and Weimin Liu

Division: Economics and Finance

Nottingham University Business School

Jubilee Campus

telephone: +44 (0) 115 84 66602
fax: +44 (0) 115 84 66667