DeAngelo, Harry; Gonçalves, Andrei S.; Stulz, René M. - National Bureau of Economic Research - 2021
typically vary widely over extended horizons, with dynamics remarkably similar to (and complementary with) those of capital … structure. Leverage and cash dynamics interact approximately as predicted by the internal-versus-external funding regimes in … almost always volatile. Most firms increase leverage sharply as cash balances (internal funds) become scarce. Capital …