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Mayer, Colin; Sussman, Oren - C.E.P.R. Discussion Papers - 2004

This Paper reports a new test of capital structure theories. It uses a filtering technique to identify large investment spikes. We find that the spikes are predominantly financed with debt by large firms and by new equity by small loss-making firms. In the process, firms move significantly away...

Persistent link: https://www.econbiz.de/10005067393

How Exports Matter: Trade Patterns over Development Stages

Audretsch, David B; Sanders, Mark; Zhang, Lu - C.E.P.R. Discussion Papers - 2012

In this paper we first propose a proxy for the maturity of a country’s export bundle based on product life cycle theory …. Employing a conditional latent class model, we then examine the effect of maturity of countries’ exports on their economic … faster when they specialize in less mature products in an advanced country regime. The effect of maturity turns insignificant …

Persistent link: https://www.econbiz.de/10011083276

The Impact of Debt Levels and Debt Maturity on Inflation

Faraglia, Elisa; Marcet, Albert; Oikonomou, Rigas; … - C.E.P.R. Discussion Papers - 2012

average maturity of government debt. We analyse these relationships under two different institutional settings. In one case … given. We identify the main mechanisms through which inflation is affected by debt and debt maturity (a real balance effect … monetary and fiscal policy we find that the persistence and volatility of inflation depends on the sign, size and maturity …

Persistent link: https://www.econbiz.de/10011083281

The Bond Market: An Inflation-Targeter's Best Friend

Rose, Andrew K - C.E.P.R. Discussion Papers - 2014

This paper explores the relationship between inflation and the existence of a publicly-traded, long-maturity, nominal …

Persistent link: https://www.econbiz.de/10011084572

Creditor Rights and Debt Allocation within Multinationals

Akbel, Basak; Schnitzer, Monika - C.E.P.R. Discussion Papers - 2010

We analyze the optimal debt structure of multinational corporations choosing between centralized or decentralized borrowing. We identify how this choice is affected by creditor rights and bankruptcy costs, taking into account managerial incentives and coinsurance considerations. We find that...

Persistent link: https://www.econbiz.de/10008466341

Disagreement and Flexibility: A Theory of Optimal Security Issuance and Capital Structure

Boot, Arnoud W A; Thakor, Anjan - C.E.P.R. Discussion Papers - 2003

In this Paper we introduce flexibility as an economic concept and apply it to the firm’s security-issuance decisions and capital structure choice. Flexibility is the ability to make decisions that one thinks are best even when others disagree. Firms value flexibility because it allows...

Persistent link: https://www.econbiz.de/10005666532

Limits of Limits of Arbitrage: Theory and Evidence

Hombert, Johan; Thesmar, David - C.E.P.R. Discussion Papers - 2009

We present a model where arbitrageurs operate on an asset market that can be hit by information shocks. Before entering the market, arbitrageurs are allowed to optimize their capital structure, in order to take advantage of potential underpricing. We find that, at equilibrium, some arbitrageurs...

Persistent link: https://www.econbiz.de/10005666728

Credit Risk and Dynamic Capital Structure Choice

Dangl, Thomas; Zechner, Josef - C.E.P.R. Discussion Papers - 2003

This Paper analyses the effect of dynamic capital structure adjustments on credit risk. Firms may optimally adjust their leverage in response to stochastic changes in firm value. It is shown that capital structure dynamics lower optimal initial leverage ratios but increase both fair credit...

Persistent link: https://www.econbiz.de/10005123682

Liquidity Risk, Leverage and Long-Run IPO Returns

Eckbo, B Espen; Norli, Øyvind - C.E.P.R. Discussion Papers - 2005

We examine the risk-return characteristics of a rolling portfolio investment strategy where more than six thousand Nasdaq initial public offering (IPO) stocks are bought and held for up to five years. The average long-run portfolio return is low, but IPO stocks appear as ‘longshots’, as...

Persistent link: https://www.econbiz.de/10005124287

Who is Afraid of Political Risk? Multinational Firms and their Choice of Capital Structure

Kesternich, Iris; Schnitzer, Monika - C.E.P.R. Discussion Papers - 2007

This paper investigates how multinational firms choose the capital structure of their foreign affiliates in response to political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we distinguish different types of political risk, such...

Persistent link: https://www.econbiz.de/10005067659