Balboa, Marina Martí, José and Tresierra-Tanaka, Álvaro 2017. Are firms accessing venture funding more financially constrained? New evidence from capital structure adjustments. The European Journal of Finance, Vol. 23, Issue. 3, p. 243.
Borochin, Paul and Yang, Jie 2017. Options, equity risks, and the value of capital structure adjustments. Journal of Corporate Finance, Vol. 42, p. 150.
Schanz, Deborah Dinkel, Andreas and Keller, Sara 2017. Tax attractiveness and the location of German-controlled subsidiaries. Review of Managerial Science, Vol. 11, Issue. 1, p. 251.
Versmissen, J. and Zietz, J. 2017. Is There a Leverage Target for REITs?. The Quarterly Review of Economics and Finance,
Ahsan, Tanveer Man, Wang and Qureshi, Muhammad Azeem 2016. Mean reverting financial leverage: theory and evidence from Pakistan. Applied Economics, Vol. 48, Issue. 5, p. 379.
Andriosopoulos, Dimitris and Barbopoulos, Leonidas G. 2016. Relative equity market valuation conditions and acquirers’ gains. Review of Quantitative Finance and Accounting,
Anginer, Deniz Demirguc-Kunt, Asli Huizinga, Harry and Ma, Kebin 2016. Corporate governance and bank capitalization strategies. Journal of Financial Intermediation, Vol. 26, p. 1.
Antzoulatos, Angelos A. Koufopoulos, Kostas Lambrinoudakis, Costas and Tsiritakis, Emmanuel 2016. Supply of capital and capital structure: The role of financial development. Journal of Corporate Finance, Vol. 38, p. 166.
Baum, Christopher F. Caglayan, Mustafa and Rashid, Abdul 2016. Capital structure adjustments: Do macroeconomic and business risks matter?. Empirical Economics,
Belkhir, Mohamed Maghyereh, Aktham and Awartani, Basel 2016. Institutions and corporate capital structure in the MENA region. Emerging Markets Review, Vol. 26, p. 99.
Castro, Paula Tascón Fernández, María Teresa Amor-Tapia, Borja and de Miguel, Alberto 2016. Target leverage and speed of adjustment along the life cycle of European listed firms. BRQ Business Research Quarterly, Vol. 19, Issue. 3, p. 188.
Chauhan, Gaurav Singh and Huseynov, Fariz 2016. Corporate financing and target behavior: New tests and evidence. Journal of Corporate Finance,
Chipeta, Chimwemwe and Deressa, Chera 2016. The asymmetric effects of financing deficits and surpluses on the pecking order theory in sub-Saharan Africa. Investment Analysts Journal, Vol. 45, Issue. 2, p. 81.
Choi, Jaewon and Richardson, Matthew 2016. The volatility of a firm's assets and the leverage effect. Journal of Financial Economics, Vol. 121, Issue. 2, p. 254.
Cookson, J. Anthony 2016. Leverage and strategic preemption: Lessons from entry plans and incumbent investments. Journal of Financial Economics,
Cummins, J. David and Weiss, Mary A. 2016. Equity Capital, Internal Capital Markets, and Optimal Capital Structure in the US Property-Casualty Insurance Industry. Annual Review of Financial Economics, Vol. 8, Issue. 1, p. 121.
DE MOOIJ, RUUD A. and KEEN, MICHAEL 2016. Debt, Taxes, and Banks. Journal of Money, Credit and Banking, Vol. 48, Issue. 1, p. 5.
Duca, Eric 2016. Do investors learn from the past? Evidence from follow-on equity issues. Journal of Corporate Finance, Vol. 39, p. 36.
Eisfeldt, Andrea L. and Muir, Tyler 2016. Aggregate external financing and savings waves. Journal of Monetary Economics, Vol. 84, p. 116.
Faff, Robert Kwok, Wing Chun Podolski, Edward J. and Wong, George 2016. Do corporate policies follow a life-cycle?. Journal of Banking & Finance, Vol. 69, p. 95.
This paper examines time-series patterns of external financing decisions and shows that publicly traded U.S. firms fund a much larger proportion of their financing deficit with external equity when the cost of equity capital is low. The historical values of the cost of equity capital have long-lasting effects on firms’ capital structures through their influence on firms’ historical financing decisions. We also introduce a new econometric technique to deal with biases in estimates of the speed of adjustment toward target leverage. We find that firms adjust toward target leverage at a moderate speed, with a half-life of 3.7 years for book leverage, even after controlling for the traditional determinants of capital structure and firm fixed effects.
This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.
Email your librarian or administrator to recommend adding this journal to your organisation's collection.
Full text views reflects the number of PDF downloads, PDFs sent to Google Drive, Dropbox and Kindle and HTML full text views.
Abstract views reflect the number of visits to the article landing page.
* Views captured on Cambridge Core between September 2016 - 28th March 2017. This data will be updated every 24 hours.