The top performing stocks: A Capital Structure analysis of the best 2023 companies
Click the Poster to View Full Screen, Right click to save image
Xiaonan Liu
CoPIs:
Yuya Huang, Yiyun Miao, Jiajun Liu
College:
College of Business and Public Management
Major:
Finance
Faculty Research Advisor(s):
Andreas Kakolyris, Tin Shan Suen
Abstract:
Capital structure refers to the mix of a company's different sources of financing and the proportion of each in its overall capitalization. And the cost of capital is the total cost a company incurs in order to acquire funds for its operations. This research project delves into a comprehensive exploration of the intricate relationship between capital structure and the impact of beta on the cost of capital, with a particular focus on the top-performing stocks of 2023. By closely scrutinizing the capital structures of industry leaders such as AbercrmFitch, Vertiv, SuperMicro, and Duolingo, our objective is to discern the existence of an optimal capital structure that effectively augments overall firm value. The investigation employs a rigorous analytical approach to determine whether specific capital structures wield a significant influence on the cost of capital, thereby exerting a discernible impact on overall firm performance. Through a thorough examination of empirical data and statistical methodologies, we seek to unveil the nuanced dynamics and causal relationships between capital structure, beta, and firm valuation.The findings of this study will be presented in a comprehensive poster.