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Do Firms Engage in Risk-Shifting? Empirical Evidence

Gilje, Erik P. - 2016

I empirically test whether firms engage in risk-shifting. Contrary to what risk-shifting theory predicts, I find that …

Persistent link: https://www.econbiz.de/10012983498

Capital Structure Choice, Information Asymmetry and Debt Capacity : Evidence from India

Komera, Surenderrao - 2016

We examine the relevance of the pecking order theory of capital structure among emerging market firms in the light of … that sample firms follow the pecking order while making their financing choices.We find that the pecking order theory fares … theory fails to explain sample firms' financing choices …

Persistent link: https://www.econbiz.de/10012980527

Joint-Audit, Political Connections and Cost of Debt Capital

Al-Hadi, Ahmed - 2018

We investigate the association between joint audit and cost of debt for a sample of non-financial, publicly listed firms from the Gulf Cooperation Council (GCC) countries. Although the conventional wisdom suggests that “two heads are better than one”, empirical evidence on the beneficial...

Persistent link: https://www.econbiz.de/10012934878

How Sensitive Is Corporate Debt to Swings in Commodity Prices ?

Donders, Pablo - 2017

Commodity producing corporations have trillions of dollars in outstanding debt. In that context, the bust in commodity prices has raised concerns about the sustainability of this debt and its systemic impacts. But so far the literature lacks estimates of how sensitive is this corporate debt to...

Persistent link: https://www.econbiz.de/10012968310

Financial distress, refinancing, and debt structure

Dudley, Evan - 2018

We examine changes in debt structure when firms experience financial distress. At these points in time, firms refinance and undergo substantial changes in priority structure. Specifically, we find that firms di- versify their priority structure relative to its pre-distress composition. We show,...

Persistent link: https://www.econbiz.de/10012936867

Do Credit Ratings Really Affect Capital Structure?

Kemper, Kristopher - 2018

This paper revisits recent investigations into the role credit ratings play in the marginal financing behavior of firms. While it has long been documented that credit ratings may be an important determinant of firm capital structure policy, academics have only recently subjected this motivation...

Persistent link: https://www.econbiz.de/10012938502

Tax Incentives and Capital Structure Choice : Evidence from Germany

Hartmann-Wendels, Thomas - 2016

This paper provides new evidence that taxes affect capital structure choice, using a unique and comprehensive panel data set which covers 86,173 German non-financial firms over the years 1973-2008. Following the Graham methodology to simulate marginal tax rates, we find a statistically and...

Persistent link: https://www.econbiz.de/10012988817

The Influence of Growth, Asset Tangibility, Cost of Debt, Profitability and Business Risk on Debt Capital

Arilyn, Erika Jimena - 2020

Objective - The aims to identify the significant factors that influence a company's decision to use debt capital.Methodology/Technique - This study uses 5 independent variables namely; firm growth (growth rate in total gross assets), asset tangibility (ratio of net fixed assets to total assets),...

Persistent link: https://www.econbiz.de/10012842722

Does Mandatory Recognition of Off-Balance Sheet Items Affect Capital Structure Choice? Evidence from SFAS 158

Axenrod, Michael - 2020

We investigate whether mandatory recognition of previously disclosed off-balance sheet items affects corporate capital structure decisions. Specifically, we use the introduction of the Statement of Financial Accounting Standards No. 158 as a quasi-exogenous shock to financial reporting decisions...

Persistent link: https://www.econbiz.de/10012850209

Financial Leverage and Debt Maturity Targeting : International Evidence

Gungoraydinoglu, Ali - 2020

We provide evidence on leverage and debt maturity targeting in a large international setting. There are key differences in the relative importance of institutional factors in explaining actual as opposed to target capital structures. Targets and target deviations are plausibly influenced by the...

Persistent link: https://www.econbiz.de/10012852251