Covas, Francisco; Den Haan, Wouter - C.E.P.R. Discussion Papers - 2007
This paper documents that debt and equity issuance are procyclical for most size-sorted firm categories of listed U.S. firms. The procyclicality of equity issuance decreases monotonically with firm size. At the aggregate level, however, the results are not conclusive. The reason is that issuance...