We contribute to the literature on “market timing” by exploring periods of simultaneous equity issues and debt retirements (a leverage decreasing recapitalization, LDR). We hypothesize and show that such LDRs are driven by measures of creditor control but are not predicted by capital...

The aim of this paper is to analyse for a multi-country large emerging market sample the choice between debt and equity simultaneously with the decision between short-and long-term debt. In order to investigate the joint decision among leverage and maturity we examine an unique sample of 986...

This paper examines the impact of managerial entrenchment on financial flexibility, and financial leverage decisions of small public firms compared to medium and large firms based on market capitalization quartiles. E-index is a proxy for managerial entrenchment, and excess cash is a proxy for...

This study investigates how the recent global financial crisis (GFC) has changed the relationship between equity market liquidity and the capital structure of firms listed on the Australian Securities Exchange (ASX). The study takes into account the recent GFC by splitting the sample period into...

This paper analysis capital structure determinants of Croatian enterprises based on a cross-sectional data for pre-recession 2007 and recession 2010 comprising about 10,000 firms. Determinants are selected with reference to the relevant capital structure theories and include asset tangibility,...

This study examines the impact of 1997 Asian and 2008 Global financial crises on the capital structure of Korean listed companies. Using a data set covering 1,159 Korean listed non-financial firms from 10 industrial sectors over period 1985-2015, the pattern of firms' capital structure before...

Objective – This paper shows how leverage affects firm's fragility and financial soundness during financial and industry crises.Methodology/Technique – Long term inefficient and zombie firms are explored through the effects of leverage in additional tests.Findings – There are two main...

Coronavirus pandemic has its significant and severe effects on the operations of different businesses all over the world and consequently on the banking sector, which is of great importance and represents an important source of credit to individuals and corporations. The objective of this paper...

The rising stockpile of cash as a share of total assets at U.S. firms has intrigued economists since at least the paper of Bates, Kahle, and Stulz (2006), yet there has been relatively little work on where this cash has come from and how it is related to investment performance. We exploit...

The present paper examines the capital structure adjustment dynamics of listed non-financial corporations in seven East Asian countries during 1994-2002. Compared to firms in the least affected countries, average leverages were much higher among firms in the worst affected countries while the...