Faulkender, Michael; Flannery, Mark J.; Hankins, … - In: Journal of Financial Economics 103 (2012) 3, pp. 632-646
Recent research has emphasized the impact of transaction costs on firm leverage adjustments. We recognize that cashflow realizations can provide opportunities to adjust leverage at relatively low marginal cost. We find that a firm's cashflow features affect not only the leverage target, but also...
