DeAngelo, Harry; DeAngelo, Linda; Whited, Toni M. - In: Journal of Financial Economics 99 (2011) 2, pp. 235-261
Firms deliberately but temporarily deviate from permanent leverage targets by issuing transitory debt to fund investment. Leverage targets conservatively embed the option to issue transitory debt, with the evolution of leverage reflecting the sequence of investment outlays. We estimate a dynamic...
