We investigate whether excess control rights of ultimate owners in pyramids affect banks' adjustment to their target capital ratio. When ultimate control rights and cash-flow rights are identical, banks increase their capital ratio by issuing equity and by reshuffling their assets without...

Research on capital structure has been shifting from static to dynamic approaches. This shift is denoted by efforts to verify the presence of optimal leverage and how a firm would adjust to changes in variables that affect the leverage. This research derives an Error Correction Model from a...

Purpose The purpose of this paper is to investigate how the timing behavior and the adjustment toward the target of capital structure interact with each other in the capital structure decisions. Past literature finds that both timing and targeting are significant in determining the leverage...