Purpose The purpose of this paper is to provide new insights into the low-leverage phenomenon by analyzing the dynamics … use a multinomial ordered logit model, the authors break down the low-leverage firms into several levels of debt aversion … approximately 19.7 per cent still adopt a low-leverage policy. Second, greater asset volatility increases the expected likelihood …

% (ultra-low leverage). Firms maintaining zero-leverage or ultra-low leverage are generally smaller, younger, and less …