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I build a dynamic capital structure model that demonstrates how business-cycle variations in expected growth rates, economic uncertainty, and risk premia influence firms' financing and default policies. Countercyclical fluctuations in risk prices, default probabilities, and default losses arise...
Persistent link: https://www.econbiz.de/10013155971
The goal of this study is to identify empirically how country-level development, taking into account the financial and macroeconomic environment, affect the risk profiles of the banking sector in Europe. Through a dataset that covers 3,399 European banks spanning the period 1996-2011, and the...
Persistent link: https://www.econbiz.de/10011760927
Persistent link: https://www.econbiz.de/10009696906
to build a capital structure that is desirable for shareholders by decrease financial risk and expand their profitability …. Thus, the aim of this study is to investigate the relationship between capital structure and profitability.Methods: In … examining the relationship between capital structure and profitability, we apply correlation and regression analysis on dataset …
Persistent link: https://www.econbiz.de/10012848765
Persistent link: https://www.econbiz.de/10013366334
more capital investment does not seem to contribute to higher national economic growth or to higher corporate profitability …
Persistent link: https://www.econbiz.de/10014217622
Purpose This study aims to seek to analyse the relationships between profitability, productivity, external debt and … certain level of profitability, this determinant positively impacts SME growth. Productivity influences positively the firm … profitability and labour productivity for firm growth. For policymakers, the results suggest the need for favourable conditions for …
Persistent link: https://www.econbiz.de/10014506799
In an approach analogous to Rajan and Zingales (1998), we examine how the ability to access long-term debt affects firm-level growth volatility. We find that firms in industries with stronger preference to use long-term finance relative to short-term finance experience lower growth volatility in...
Persistent link: https://www.econbiz.de/10013000820
opportunities, size, profitability and asset structure of firms exert an impact on financial decisions of firms. However, the …
Persistent link: https://www.econbiz.de/10012857606
Using the recent public health pandemic (COVID-19) as a laboratory experiment, I find evidence of an asymmetrical relation between a firm's debt maturity structure choice and its growth opportunities. Firms with high pre-pandemic exposure to growth-inducing factors obtained from 10-K filings...
Persistent link: https://www.econbiz.de/10013214384