Ippolito, Filippo; Steri, Roberto; Tebaldi, Claudio - 2017
returns depend on whether a firm's leverage is above or below its target leverage. The data support the model predictions …. Controlling for leverage, overlevered (underlevered) firms earn higher (lower) returns. Controlling for target leverage the … textbook positive relationship between leverage and returns is restored, while target leverage is negatively related to returns …