Asymmetries in the firm's use of debt to changing market values

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F18%3A00490260" target="_blank" >RIV/00216208:11640/18:00490260 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1016/j.jcorpfin.2017.12.006" target="_blank" >http://dx.doi.org/10.1016/j.jcorpfin.2017.12.006</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.jcorpfin.2017.12.006" target="_blank" >10.1016/j.jcorpfin.2017.12.006</a>

Result language
angličtina
Original language name
Asymmetries in the firm's use of debt to changing market values
Original language description
Using a sample of U.S. firms over the period, 1984 to 2013, this study examines the relation between market and book leverage ratios. Unlike Welch (2004) who contends that changes in market leverage do not induce adjustments in book leverage, we find an asymmetric effect. That is, firms adjust their book leverage only when the changes in market leverage are due to increases in equity values. No adjustment is observed when firm equity values decrease. Our results are consistent with Myers (1977) and Barclay et al. (2006) who argue that optimal debt levels decrease with corporate growth opportunities.
Czech name
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Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50206 - Finance

Project
<a href="/en/project/GA15-15927S" target="_blank" >GA15-15927S: Firm production, efficiency, and corporate finance: An international perspective</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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