Gatchev, Vladimir A.; Spindt, Paul A.; Tarhan, Vefa - In: Journal of Corporate Finance 15 (2009) 2, pp. 179-195
This paper examines the financing decisions of firms in response to changes in investments and profits. We find that information frictions play important roles in firms' financing decisions. However, we find no evidence that asymmetric information about the value of a firm's assets causes equity...