Open AccessManagers versus Students: New Approach in Improving Capital Structure Education
Author(s) -
Anton Miglo
Publication year - 2012
Publication title -
journal of education and vocational research
Language(s) - English
Resource type - Journals
ISSN - 2221-2590
DOI - 10.22610/jevr.v3i11.89
Subject(s) - capital (architecture) , focus (optics) , perception , capital structure , knowledge management , sociology , public relations , computer science , psychology , economics , political science , finance , debt , physics , archaeology , neuroscience , optics , history
According to Graham and Harvey (2001), an immense gap exists between capital structure theories and practice. By analyzing students’ perception of capital structure theories and the differences between their opinion and that of the current CEO’s and managers this paper argues that this can be partially explained by current educational practices. Educators mostly focus on one or maybe two most popular theories and students have much smaller knowledge about other theories. Secondly educational practices favor trade-off theory to asymmetric information based theories. The paper provides some suggestions regarding capital structure education and future research.