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The COVID-19 impact on corporate leverage and financial fragility

Haque, Sharjil Muktafi; Varghese, Richard - 2021

We study the impact of the COVID-19 recession on capital structure of publicly listed U.S. firms. Our estimates suggest leverage (Net Debt/Asset) decreased by 5.3 percentage points from the pre-shock mean of 19.6 percent, while debt maturity increased moderately. This de-leveraging effect is...

Persistent link: https://www.econbiz.de/10012796218

Debt structure

Colla, Paolo; Ippolito, Filippo; Li, Kai - In: Annual review of financial economics 12 (2020), pp. 193-215

Persistent link: https://www.econbiz.de/10012404627

Strategic Debt Restructuring and Asset Substitution

Giamouridis, Daniel; Prassa, Chara - 2021

This paper examines whether debt renegotiation mitigates the agency costs of asset substitution. Inspired by the studies of Mella-Barral and Perraudin (1997) and Leland (1998), we have developed an analytical continuous time model of a firm that has the option to switch to a higher risk activity...

Persistent link: https://www.econbiz.de/10013250336

Endogenous debt maturity : liquidity risk vs. default risk

Manuelli, Rodolfo E.; Sanchez, Juan M. - 2018

Persistent link: https://www.econbiz.de/10011950510

Do stronger creditors' rights and an efficient bankruptcy process affect the speed of adjustment to target capital structure? : evidence from a quasi-natural experiment

Rawal, Dilesh; Mahakud, Jitendra; Mishra, Rohan Kumar - In: Cogent economics & finance 12 (2024) 1, pp. 1-13

This study investigates the impact of the Insolvency and Bankruptcy Code (IBC) on the capital structure speed of … financial strategies and align with the dynamic trade-off theory, highlighting firms' active adjustment towards optimal capital …, regulators, and corporate executives. The objective of this study was to investigates the effect of the Insolvency and Bankruptcy …

Persistent link: https://www.econbiz.de/10015338056

Flexible prices and leverage

D'Acunto, Francesco; Liu, Ryan; Pflueger, Carolin E.; … - 2017

The frequency with which firms adjust output prices helps explain persistent differences in capital structure across firms. Unconditionally, the most exible-price firms have a 19% higher long-term leverage ratio than the most sticky-price firms, controlling for known determinants of capital...

Persistent link: https://www.econbiz.de/10011597779