A STUDY OF THE EXPANSION OF CORPORATIONS THROUGH THE REINVESTMENT OF EARNINGS - AN ABSTRACT OF A THESIS

Sep 21, 2026

Uploaded by Liam

The thesis examines how corporate financial structures expand to support increased business activity and shifts in the price level, with a focused analysis of reinvested earnings as a financing mechanism. It contrasts financing methods by their relationships and argues that, under normal conditions, stockholders may benefit more from reinvesting than from adding stockholders. The choice between reinvestment and borrowing depends on corporate profit relative to borrowing costs and on what stockholders could gain if earnings were paid as dividends and invested elsewhere.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages9

Reading Time23 min

AccessFree to download

Chapter I

Methods for financing corporate expansion

Chapters II-VI

Reinvested earnings in different enterprise expansions

97-84070-10Brown,PembrokeHolcomb A study of the expansionof corporations through... Urbana,IⅢ. 1926 # COLUMBIA UNIVERSITY LIBRARIESPRESERVATION DIVISION BIBLIOGBAPHIC MICROFORM TARGET OBIGINAL MATERIAL AS FILMED-EXISTING BIBLIOGRAPHIC RECORD | 308 | | | | --- | --- | --- | | | | | | Brown,Pembroke Holcomb,1885-
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Box 198 A study of the expansion of corporations through
the reinvestment of earnings,by Pembroke Holcómb | | | | | | | | | | | | | Brown...Urbana,Il1.,1926.
6p.24 cm. | | | | | | | | Abstract of thesis,(Ph,D.)University of Illi- | | | | nois,1923. | | | | C | | | | | o | | | | | Reproductions may not be made without permission tom Columbla UniverstyLibraries. ## RESTRICTIONS ON USE: # TECHNICAL MICROFORM DATA 5mmREDUCTION RATIO: //MAGE PLACEMENT:IA (旧A IB IB ## FILM SIZE: DATE FILMED: 5/197 INITIALS:TLMILN 23444 ## TRACKING\#: FILMED BY PRESERVATION RESOURCES,BETHLEHEM,PA. # A STUDY OF THE EXPANSION OFCORPORATIONS THROUGH THEREINVESTMENT OF EARNINGS 308 Z x198 BY PEMBROKE HOLCOMB BROWN A.B.,Univeraity of Illinois,1915 M.A,University of Illinois,1917 # AN ABSTRACT OF A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRE.MENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHYIN ECONOMICS IN THE GRADUATE SCHOOLOF THEUNIVERSITY OF ILLINOIS,1923 URBANA,ILLINOIS1926 # A STUDY OF THE EXPANSION OFCORPORATIONS THROUGH THEREINVESTMENT OF EARNINGS BYPEMBROKE HOLCOMB BROWN A.B.,University of Illinois,1915 M.A.,University of Ilinois,1917SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHYINECONOMICS INTHEGRADUATE SCHOOLOF THEUNIVERSITY OF ILLINOIS,1923URBANA,ILLINOIS1926 ## AN ABSTRACT OF A THESIS u b75izt,4 # A STUDY OF THE EXPANSION OF CORPORATIONSTHROUGH REINVESTED EARNINGS The thesis deals,in general,with the expansion of the finan-cial structure of a corporation to meet the needs of an increasedbusiness or of a rising price level.In particular,it is a studyof the use of reinvested earnings in financing such an expansion. The introduction,Chapter I,takes up the methods by whichan expansion may be financed,and shows the relationship in whichthe various methods stand one to another.It shows,further,that,under normal conditions,those holding stock will find it more ad-vantageous to reinvest earnings than to increase the number ofstockholders;and that as between reinvesting earnings and bor-rowing the choice will depend on the profits of the corporation ascompared with the cost of borrowed funds and with the profitsthat might be realized by the stockholders were the earnings paidout in dividends and invested in some other enterprise.ChaptersII,III,IV,V and VI are studies of the use of reinvested earningsin financing the expansion of corporations engaged in variousenterprises as follows: Chapter II.The Expansion of Public Utility Companies Chapter III.The Expansion of Massachusetts TradingCompanies Chapter IV.The Expansion of New England Textile Com-panies Chapter V.The Expansion of the Arlington MillsChapter VI.The Expansion of Automobile ManufacturingCompanies The study of Public Utlity companies rests on data takenfrom the Massachusetts Abstract of Certificates of Condition ofCorporations,and on data concerning Central Electric Light andPower Stations taken from reports of the U.S.Bureau of theCensus.The Massachusetts Abstract also furnished the data forthe study of Massachusetts Trading Companies,and for the studyof the New England Textile Companies and the Arlington Millsin the years before 1899.The data for the study of New EnglandTextile Companies and the Arlington Mills in more recent years,and for the study of Automobile Companies was taken from thebalance sheets published in Moody's Manual of CorporationReports. The period covered by each of the several studies was deter-mine

FAQs

What is the thesis mainly studying?

The thesis studies how corporations expand their financial structure and, in particular, how reinvested earnings are used to finance that expansion.

How does the thesis frame financing choices for expansion?

It compares methods of financing and explains that stockholders may find reinvesting earnings advantageous under normal conditions, while the reinvestment-or-borrowing decision depends on profits versus borrowing costs and alternative returns.

Which types of enterprises are analyzed in later chapters?

Chapters II through VI analyze reinvested earnings in financing expansion for public utility companies, Massachusetts trading companies, New England textile companies, the Arlington Mills, and automobile manufacturing companies.

Sep 21, 2026

Uploaded by Liam