Bagley, C. N.; Ghosh, D. K.; Yaari, U. - In: The European Journal of Finance 4 (1998) 2, pp. 157-183
Static tradeoff theories, which do not explicitly treat the impact of transaction costs, do not explain the policy of asymmetry between frequent small debt transactions and infrequent large equity transactions. Nor do these theories explain why the debt ratio is allowed to wander a considerable...