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Heterogeneity in the Speed of Adjustment Towards Target Leverage

Florysiak, David - 2011

firms within the sample adjust at the same (average) pace. Dynamic capital structure theory predicts heterogeneity in … high. Our evidence is consistent with the general relevance of the trade-off theory …

Persistent link: https://www.econbiz.de/10013128172

Gauging a Firm's Financing Orientation : Integrating Predictions of the Trade-Off Theory, the Pecking Order Model, and the Market Timing Hypothesis

Wu, Shanhong - 2011

After critiquing arguments and evidence associated with the trade-off theory, the pecking order model, and the market …

Persistent link: https://www.econbiz.de/10013128573

Cash holdings and credit risk

Acharya, Viral V.; Davydenko, Sergei A.; Strebulaev, Ilya A. - 2012

Intuition suggests that firms with higher cash holdings should be 'safer' and have lower credit spreads. Yet empirically, the correlation between cash and spreads is robustly positive. This puzzling finding can be explained by the precautionary motive for saving cash, which in our model causes...

Persistent link: https://www.econbiz.de/10010206259

Empirical capital structure research : new ideas, recent evidence, and methodological issues

Elsas, Ralf; Florysiak, David - 2008

Even 50 years after Modigliani/Miller's irrelevance theorem, the basic question of how firms choose their capital structure remains unclear. This survey paper aims at summarizing and discussing corresponding recent developments in empirical capital structure research, which, in our view, are...

Persistent link: https://www.econbiz.de/10010442783

The evolution of financing structure in U.S. startups

Cotei, Carmen; Farhat, Joseph - In: Journal of entrepreneurial finance : JEF ; official … 19 (2017) 1, pp. 1-32

modeling technique to test the financial growth cycle theory developed by Berger and Udell (1998). The data used in this study … 2004 and surveyed annually through 2011. Consistent with the predictions of financial growth cycle theory, in the startup …

Persistent link: https://www.econbiz.de/10011991274

Dynamic corporate capital structure behavior : empirical assessment in the light of heterogeneity and non stationarity

Bontempi, Maria Elena; Bottazzi, Laura; Golinelli, Roberto - 2015

Understanding the dynamics of the leverage ratio is at the heart of the empirical research about firms' capital structure, as they can be very different under alternative theoretical models. The pillars of almost all empirical applications are the maintained assumptions of poolability and...

Persistent link: https://www.econbiz.de/10011715923

Cash holdings and financing decisions under ambiguity

Agliardi, Elettra; Agliardi, Rossella; Spanjers, Willy - 2014

This paper addresses the following unresolved questions: Why do some firms issue equity instead of debt? Why did most firms retain their cash holdings instead of distributing them as dividends in recent times? How do firms change their financing policies during a period of severe financial...

Persistent link: https://www.econbiz.de/10011715949

Refinancing, profitability and capital structure : new evidence

Eckbo, B. Espen; Kisser, Michael - 2018

With zero capital structure rebalancing costs, dynamic tradeoff theory predicts that firms stay at their leverage … correlation between leverage and profitability. When rebalancing costs are added to this theory, it predicts a positive leverage … the theory predicts it should be positive. Our results thus resurrect the leverage-profitability puzzle …

Persistent link: https://www.econbiz.de/10011847874

Does the Firm Information Environment Influence Financing Decisions? A Test Using Disclosure Regulation

Albring, Susan - 2015

Extant theory claims a firm's information environment impacts the choice between debt and equity financing. However … consistent with the pecking order theory: firms with deteriorated firm information environments increase their use of less …

Persistent link: https://www.econbiz.de/10013019382

Contingent Capital, Capital Structure and Investment

Tan, Yingxian - 2015

far as US corporations are concerned. In contrast to traditional corporate finance theory, our model indicates that the …

Persistent link: https://www.econbiz.de/10013028117