Litigation risk and financial leverage

被引：0
|
作者：
Malm J. [1 ]
Krolikowski M. [2 ]
机构：
[1] Department of Finance, College of Charleston, 5 Liberty Street, Beatty Suite 330, Charleston, 29424, SC
[2] School of Business, Providence College, 1 Cunningham Square, Providence, 02918, RI
来源：
Journal of Economics and Finance | 2017年 / 41卷 / 1期
关键词：
Debt maturity; Financial leverage; Litigation risk;
D O I：
10.1007/s12197-015-9348-0
中图分类号：
学科分类号：
摘要：
In this paper, we use a unique hand-collected dataset on corporate litigation to examine the relationship between litigation risk and financial leverage. We find that an increase in litigation risk is associated with a significant decrease in total debt. Partitioning total debt into long-term debt and short-term debt, we find a negative relationship between litigation risk and long-term debt. There is no significant relationship between litigation risk and short-term debt. © 2015, Springer Science+Business Media New York.
引用
收藏
页码：180 / 194
页数：14
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