firms’ leverage decisions, specifically focusing on how these factors influence target leverage dynamics and financial … recognise that factors like macroeconomic fluctuations and unanticipated financing needs can cause deviations from this target … leverage. This study seeks to explore the joint effect of economic policy uncertainty (EPU) and large long-term investments on …

's leverage is above or below its target leverage. We provide empirical evidence in support of the model predictions. Controlling …

's leverage is above or below its target leverage. We provide empirical evidence in support of the model predictions. Controlling …

adjustment behavior towards target leverage policy, this study uses the GMM (generalized method of moments) models of Arellano …

returns depend on whether a firm's leverage is above or below its target leverage. The data support the model predictions …. Controlling for leverage, overlevered (underlevered) firms earn higher (lower) returns. Controlling for target leverage the … textbook positive relationship between leverage and returns is restored, while target leverage is negatively related to returns …