Udomsirikul, Prasit; Jumreornvong, Seksak; Jiraporn, Pornsit - In: Journal of Multinational Financial Management 21 (2011) 2, pp. 106-117
We explore the impact of liquidity on capital structure decisions. Firms that enjoy more liquid equity experience a lower cost of equity and may be more motivated to adopt more equity and less debt in their capital structure. Consistent with this notion, the empirical evidence demonstrates an...