Corporate Investment and Financing Dynamics

被引：0
|
作者：
Hackbarth, Dirk [1 ,2 ,3 ]
Sun, Dongming [4 ]
机构：
[1] Boston Univ, Boston, MA 02215 USA
[2] CEPR, London, England
[3] ECGI, Boston, MA 02215 USA
[4] Univ Illinois, Champaign, IL USA
来源：
REVIEW OF CORPORATE FINANCE STUDIES | 2023年 / 13卷 / 03期
关键词：
CAPITAL STRUCTURE DECISIONS; PARTIAL ADJUSTMENT; MODEL;
D O I：
10.1093/rcfs/cfad009
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We consider the behavior of leverage ratios in a trade-off model with investment. Debt underutilization to retain financial flexibility persists even when firms exercise their last investment options, and it is more (less) severe for more back-loaded (front-loaded) investment opportunities. Leverage paths crucially hinge on the structure of the investment process, which leads firms to have significantly different target leverage ratios. Structural estimation of key parameters reveals that simulated model moments can match data moments. In simulated panels, leverage regression results are in line with the evidence, and average leverage ratios are path-dependent and persistent for extended periods of time. (JEL G31, G32) Received June 11, 2018; editorial decision December 20, 2022 by Editor Uday Rajan
引用
收藏
页码：625 / 667
页数：43
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