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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

Flexible prices and leverage

D'Acunto, Francesco; Liu, Ryan; Pflueger, Carolin; … - 2017

The frequency with which firms adjust output prices helps explain persistent differences in capital structure across firms. Unconditionally, the most exible-price firms have a 19% higher long-term leverage ratio than the most sticky-price firms, controlling for known determinants of capital...

Persistent link: https://www.econbiz.de/10011597779

The variance risk premium and capital structure

Lotfaliei, Babak - 2018

This paper investigates how the asset-return variance risk premium changes leverage. I find that the premium lowers leverage by increasing risk-neutral bankruptcy probability and costs in a model where asset returns have stochastic variance with risk premium. Empirically, the model calibrations...

Persistent link: https://www.econbiz.de/10011848389

Debt Maturity Structure and Corporate Investment

Hong, Claire Yurong; Hou, Kewei; Nguyen, Thien T. - 2023

, profitability, and growth potential. We rationalize our results in a model in which debt maturity structure is determined by the …

Persistent link: https://www.econbiz.de/10014253960

Financial constraints and firm capital structure in Kenya

Kirui, Benard Kipyegon; Gor, Seth Omondi - 2018

Empirical evidence suggests that capital structure varies across firms facing different levels of information asymmetry, however, this evidence contradict the prediction of pecking order hypothesis. Although debt capacity constraints offer some explanation for this discrepancy, it fails to...

Persistent link: https://www.econbiz.de/10011771645

Private Sector Deleveraging and Growth Following Busts

Chen, Sally - 2015

Balance sheet recessions have been a drag on activity after the Global Financial Crisis, underscoring the important role of balance sheet adjustment for resuming sustained growth. In this paper we examine private sector deleveraging experiences across 36 advanced and emerging economies countries...

Persistent link: https://www.econbiz.de/10013025503

Private Sector Deleveraging and Growth Following Busts

Chen, Sally - 2015

Persistent link: https://www.econbiz.de/10013027217

Financial distress as an agency problem : evidence on non-monotonic and substitute discipline effects of leverage and competition

Uğur, Mehmet; Solomon, Edna Maeyen; Zeynalov, Ayaz - 2021

This paper addresses two issues encountered in the empirical financial distress literature: a-theoretical treatment of leverage and product-market competition as predictors of financial distress hazard; and lack of attention to frailty as a potential source of bias in reported estimates. We...

Persistent link: https://www.econbiz.de/10014533532

An Analysis of Profitability Ratios of Dr Reddy’s Laboratories Ltd

C, Viswanatha Reedy - 2019

creditors, investors, and managers answer the following questions: Are the profitability ratios of the company growing or … profitability ratios of Dr Reddy's Laboratories Ltd., by using time-series analysis over the period from 2004-05 to 2012-13. The … overall performance of Dr Reddy's Labs Ltd., in terms of profitability is good, the company's market is growing, its earns an …

Persistent link: https://www.econbiz.de/10012861809

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