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Optimal firm's dividend and capital structure for mean reverting profitability
Menoncin, Francesco; Panteghini, Paolo; Regis, Luca - 2021
optimal dynamic control problem is characterized by two stochastic state variables: the equity value, and profitability (ROA …) of the _rm. According to the empirical evidence, we let profitability follow a mean reverting process. The problem is …
Persistent link: https://www.econbiz.de/10012668498
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Granularity of corporate debt
Choi, Jaewon; Hackbarth, Dirk; Zechner, Josef - 2013
We study to what extent firms spread out their debt maturity dates across time, which we call "granularity of corporate debt." We consider the role of debt granularity using a simple model in which a firm's inability to roll over expiring debt causes inefficiencies, such as costly asset sales or...
Persistent link: https://www.econbiz.de/10010211468
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The impact of bank capital, bank liquidity and credit risk on profitability in postcrisis period : a comparative study of US and Asia
Abbas, Faisal; Iqbal, Shahid; Aziz, Bilal - In: Cogent economics & finance 7 (2019) 1, pp. 1-18
profitability of commercial banks in the postcrisis period between 2011 and 2017 in Asian developed economies in comparison with the … USA banking industry. The findings show that bank capital and credit risk influence profitability in Asian developed … economies similar to in the USA commercial banks, whereas the impact of liquidity on the profitability of the USA large …
Persistent link: https://www.econbiz.de/10012023980
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Nonlinear modeling of target leverage with latent determinant variables: new evidence on the trade-off theory
Sabiwalsky, Ralf - 2008
The trade-off theory on capital structure is tested by modelling the capital structure target as the solution to a maximization problem. This solution maps asset volatility and loss given default to optimal leverage. By applying nonlinear structural equation modelling, these unobservable...
Persistent link: https://www.econbiz.de/10010263749
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The rat race of capital structure research for REITs and REOCs: Two spotlights on leverage
Hohenstatt, Ralf; Steininger, Bertram - 2011
This paper presents a dynamic multi-equation model based on a balance sheet identity, where technical aspects of capital structure are highlighted through separately observing debt and equity and their relationship to investment. Additionally, leverage dynamics are interpreted in their role for...
Persistent link: https://www.econbiz.de/10010307836
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Nonlinear modeling of target leverage with latent determinant variables : new evidence on the trade-off theory
Sabiwalsky, Ralf (contributor) - 2008
The trade-off theory on capital structure is tested by modelling the capital structure target as the solution to a maximization problem. This solution maps asset volatility and loss given default to optimal leverage. By applying nonlinear structural equation modelling, these unobservable...
Persistent link: https://www.econbiz.de/10003770815
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The rat race of capital structure research for REITs and REOCs : two spotlights on leverage
Hohenstatt, Ralf; Steininger, Bertram - 2011
This paper presents a dynamic multi-equation model based on a balance sheet identity, where technical aspects of capital structure are highlighted through separately observing debt and equity and their relationship to investment. Additionally, leverage dynamics are interpreted in their role for...
Persistent link: https://www.econbiz.de/10009424101
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The Leverage Ratchet Effect
Admati, Anat R.; DeMarzo, Peter M.; Hellwig, Martin; … - 2013
Firms' inability to commit to future funding choices has profound consequences for capital structure dynamics. With debt in place, shareholders pervasively resist leverage reductions no matter how much such reductions may enhance firm value. Shareholders would instead choose to increase leverage...
Persistent link: https://www.econbiz.de/10010205870
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Systematic risk, debt maturity and the term structure of credit spreads
Chen, Hui; Xu, Yu; Yang, Jun - 2012
We build a dynamic capital structure model to study the link between systematic risk exposure and debt maturity, as well as their joint impact on the term structure of credit spreads. Our model allows for time variation and lumpiness in the maturity structure. Relative to short-term debt,...
Persistent link: https://www.econbiz.de/10009583690
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Actively Keeping Secrets from Creditors : Evidence from The Uniform Trade Secrets Act
Guernsey, Scott - 2020
We find that an increase in a firm's incentives to use trade secrets to protect its intellectual property results in a more actively managed capital structure. Exploiting U.S. states' adoption of the Uniform Trade Secrets Act as a positive “shock” in the protection afforded to trade secrets,...
Persistent link: https://www.econbiz.de/10012853531