• The leverage-profitability puzzle resurrected 

      Eckbo, B. Espen; Kisser, Michael (Journal article; Peer reviewed, 2020)
      With zero capital structure rebalancing costs, dynamic trade-off theory predicts that firms stay at their leverage targets with more profitable firms staying at higher leverage. This prediction is rejected by the robustly ...
    • Tradeoff Theory and Leverage Dynamics of High-Frequency Debt Issuers 

      Eckbo, B. Espen; Kisser, Michael (Journal article; Peer reviewed, 2020)
      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) ...