Results 261 to 270 of about 62,053 (298)

Speed of capital structure adjustment to the target in Latin American firms

SN Business & Economics
Samuel Lyncon Leandro de Lima
exaly   +2 more sources

Deviation from the target capital structure and acquisition choices

Journal of Financial Economics, 2010
This study finds that managers take deviations from their target capital structures into account when planning and structuring acquisitions. Specifically, firms that are overleveraged relative to their target debt ratios are less likely to make acquisitions and are less likely to use cash in their offers.
openaire   +1 more source

Deviation from the Target Capital Structure and Acquisition Choices

Advances in Economics, Management and Political Sciences, 2023
This paper aims to discuss how managers consider capital structure variations when deciding which purchases to make. Compared to their debt ratio, highly leveraged companies are less likely to decide to buy cash. These companies purchase unimportant goals at a bargain.
openaire   +1 more source

SIMULTANEOUS DEBT AND EQUITY ISSUES AND CAPITAL STRUCTURE TARGETS

Journal of Financial Research, 1994
AbstractNumerous empirical studies find evidence that managers behave as if they pursue target debt ratios. A possible alternative to the use of conventional, separate issuances of debt and equity to effect desired adjustments toward a target ratio is the simultaneous issuance of such securities.
Randall S. Billingsley, David M. Smith, Robert E. Lamy   +2 more
openaire   +1 more source

In search of conclusive evidence: How to test for adjustment to target capital structure

Journal of Corporate Finance, 2009
Abstract Simulation experiments show that both partial-adjustment and debt-equity choice models can generate spuriously significant estimates that are consistent with the hypothesis that firms have target debt ratios to which they periodically adjust.
Armen Hovakimian, Guangzhong Li
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Corporate Behavior in Adjusting to Capital Structure and Dividend Targets: An Econometric Study

The Journal of Finance, 1984
ABSTRACTThis study of financing decisions by U.S. corporations examines the issuance of long term debt, issuance of short term debt, maintenance of corporate liquidity, issuance of new equity, and payment of dividends. Given costs and imperfections inherent in markets, a firm's financial behavior is characterized as partial adjustment to long run ...
Jalilvand, Abolhassan, Harris, Robert S
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Determinants of Target Capital Structure: The Case of Dual Debt and Equity Issues

SSRN Electronic Journal, 2002
Abstract We examine whether market and operating performance affect corporate financing behavior because they are related to target leverage. Our focus on firms that issue both debt and equity enhances our ability to draw inferences. Consistent with dynamic trade-off theories, dual issuers offset the deviation from the target resulting from ...
Armen Hovakimian, Gayane Hovakimian, Hassan Tehranian   +2 more
openaire   +1 more source

M&A Activity and the Capital Structure of Target Firms

SSRN Electronic Journal, 2020
Using a large sample of European acquisitions, we find that acquired firms substantially close the gap between their actual and optimal leverage ratios. The bulk of this adjustment occurs quite rapidly â?? within a year of the acquisition. The typical over-levered firm adjusts its debt-to-assets ratio from 34.4% in the year before acquisition to 20% in
Mark Jeffrey Flannery, Jan Hanousek, Anastasiya Shamshur, Jiri Tresl   +3 more
openaire   +1 more source

Deviations from the Target Capital Structure of Financial Institutions

SSRN Electronic Journal, 2014
Using a large sample of U.S. financial institutions between 2000-2007, this paper documents that the distance from the target capital structure helps explain several capital structure adjustments. First, financial institutions which are either over-leveraged or under-capitalized with respect to their respective target are more likely to issue different
openaire   +1 more source

Firms' dynamic adjustment to target capital structures in transition economies [PDF]

, 2004
We study the capital structure dynamics of Central and Eastern European firms in order to get a better understanding of the quantitative and qualitative development of the financial systems in this region. The dynamic model we use endogenizes the target leverage as well as the adjustment speed and is applied to microeconomic data for ten countries.
R.T.A. de Haas, H.M.M. Peeters
openaire