• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Handelshøyskolen BI
  • Articles
  • Scientific articles
  • View Item
  •   Home
  • Handelshøyskolen BI
  • Articles
  • Scientific articles
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Tradeoff Theory and Leverage Dynamics of High-Frequency Debt Issuers

Eckbo, B. Espen; Kisser, Michael
Journal article, Peer reviewed
Accepted version
Thumbnail
View/Open
Available from 2022-07-14 (659.8Kb)
URI
https://hdl.handle.net/11250/2830518
Date
2020
Metadata
Show full item record
Collections
  • Scientific articles [1765]
Original version
Review of Finance, Volume 25, Issue 2, March 2021, Pages 275–324,   10.1093/rof/rfaa018
Abstract
We test whether high-frequency net-debt issuers (HFIs)—public industrial companies with relatively low issuance costs and high debt-financing benefits—manage leverage toward long-run targets. Our answer is they do not: (1) the leverage–profitability correlation is negative even in quarters with leverage rebalancing; (2) the speed-of-adjustment to target leverage deviations is no higher for HFIs than for low-frequency net-debt issuers; and (3) under-leveraged HFIs do not speed up rebalancing activity in significant investment periods. Thus, even in the subset of firms most likely to follow dynamic trade-off theory, the theory does not appear to hold.
Publisher
Oxford Uni. Press
Journal
Review of Finance

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit