Drobetz, Wolfgang; Pensa, Pascal; Wanzenried, Gabrielle - Wirtschaftswissenschaftliches Zentrum <Basel> - 2006
. If capital structure adjustment is costly, firms may deviate temporarily from their target debt ratios. Therefore, we … new light on capital structure rebalancing arguments. We document that large swings in market values of leverage lead to … readjustment in the corresponding book values of leverage in the following periods. Finally, we find that capital structure …