Showing 1 - 10 of 148
prefer long to short maturity debt because they are concerned with the risk of refinancing at higher than expected interest … rates. However, when long-term rates are high relative to their expectations, they issue short maturity debt to minimize …
Persistent link: https://www.econbiz.de/10005114507
maturity of a country's external sovereign debt is the solution to an incentives problem, which may lead to reliance on short …
Persistent link: https://www.econbiz.de/10005666408
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
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
This paper explores the relationship between inflation and the existence of a publicly-traded, long-maturity, nominal …
Persistent link: https://www.econbiz.de/10011084572
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
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
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
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
We construct a comprehensive panel data of 92 publicly traded European utilities over the period 1994-2005 in order to study the relationship between capital structure, regulated prices, and firm value, and examine if and how this interaction is affected by ownership structure and regulatory...
Persistent link: https://www.econbiz.de/10005497873