The purpose of this study is to empirically examine the determinants of leverage in Korea. The study is conducted using 2005-2015 sample period and data of 563 listed companies in the Korean securities market. It analyzes the relationship between leverage and profitability (return on equity),...

This paper shows that asymmetric information about the timing of earnings can affect corporate capital structure. It sheds new light on the following issues: why profitable firms may be interested in issuing equity and why debt does not necessarily signal a firm's quality. These issues seem to...

This study examines the use and the determinants of leverage in a cross-section of quoted companies in Sri Lanka using a sample of firms listed in the Colombo Stock Exchange. The results indicate that the use of long-term debt is relatively low. The tangibility and growth opportunities are not...

Sustainable product innovation is a key issue facing agri-food companies to maintain and increase their competitiveness. Based on a sample of 320 international agri-food companies for the period 2002–2017, this paper analyzes the role that ownership structure and capital structure play with...

We document that corporates in emerging markets borrow more in foreign currency when the local currency provides a better hedge in downturns. We develop an international corporate finance model in which firms facing adverse selection choose the foreign currency share of their debt. In the unique...

I empirically test the impact of financial flexibility on capital structure decisions on a large sample of publically traded U.S. firms from 1971 to 2006. I find that accounting for the marginal value of financial flexibility in capital structure models sheds light on several important capital...

Using 189 commercial bank mergers between 1997 and 2004, we document a positive impact of the merger activity on bank liquidity creation. Consistent with the deposit insurance hypothesis, we find that banks with higher levels of deposit insurance create higher levels of liquidity around mergers....

Conditional conservatism has caused a controversy in recent literature in regards to whether it is rather driven by reporting demands originating from debt or equity markets. Extending the work of Ball/Shivakumar (2005), who found public companies to report conditionally more conservative than...

Numerous studies have focused on the theoretical and empirical aspects of corporate capital structure since the 1960s. As a new branch of capital structure, however, debt maturity structure has not yet received as much attention as the debt-equity choice. We use the existing theories of...

This paper investigates cash holding behaviour of firms from France, Germany, Japan, the UK and the US using data for 4,069 companies over the period 1996-2000. Our focus is particularly on the relation between cash holdings and leverage. We argue that the impact of leverage on cash balances of...