Maung, Min; Chowdhury, Reza H. - In: Review of Pacific Basin Financial Markets and Policies … 17 (2014) 04, pp. 1450027-1
Prior research has shown that credit downgrades affect firm's capital structure decision. However, after adjusting for biases associated with the use of market debt ratio and after controlling for simultaneity between credit ratings and leverage, we find that rating upgrades also play a role in...