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Financial Leverage
"... The effect of capital structure on firm value has been a subject of controversy over the years. Most early work, such as Modigliani and Miller (1958), showed that when capital markets are perfect and invest-ment policy is fixed, capital structure is irrelevant to firm value. Later ..."
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The effect of capital structure on firm value has been a subject of controversy over the years. Most early work, such as Modigliani and Miller (1958), showed that when capital markets are perfect and invest-ment policy is fixed, capital structure is irrelevant to firm value. Later
Investment patterns and financial leverage
- Chicago, University of Chicago
, 1985
"... This study Investigates the influence of the type of Investment opportunities facing a firm on its choice of capital structure. It Is shown that the more discretionary Investment opportunities a firm faces, the lower its financial leverage. Inclusion of other possible determinants of capital structu ..."
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Cited by 41 (0 self)
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This study Investigates the influence of the type of Investment opportunities facing a firm on its choice of capital structure. It Is shown that the more discretionary Investment opportunities a firm faces, the lower its financial leverage. Inclusion of other possible determinants of capital
FINANCIAL MARKETS AND FINANCIAL LEVERAGE
"... La serie de Documentos de Trabajo en versión PDF puede obtenerse gratis en la dirección electrónica: ..."
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La serie de Documentos de Trabajo en versión PDF puede obtenerse gratis en la dirección electrónica:
The Value Relevance of Changes in Financial Leverage By
"... Economic performance (economic profits, economic income, or underlying operating performance) of a firm is not observable. Market participants use accounting earnings and other proxies to measure the otherwise unobservable economic performance. Ball and Brown (1968) show that accounting earnings cap ..."
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capture the economic performance to some extent. In particular, they find that accounting earnings are correlated with stock returns (value relevant). We hypothesize and show that changes in financial leverage are also value relevant. We document a significantly negative association between changes
Impact of financial leverage on firm investment
, 2011
"... The purpose of this study was to analyze the relationship between financial leverage and firm’s investment in the presence of certain control variables such as (Tobin’s Q, cash flow, liquidity, return on equity and sale. Relationship was analyzed by applying different methodologies such as pooled re ..."
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The purpose of this study was to analyze the relationship between financial leverage and firm’s investment in the presence of certain control variables such as (Tobin’s Q, cash flow, liquidity, return on equity and sale. Relationship was analyzed by applying different methodologies such as pooled
Nonparametric models of financial leverage decisions ∗
"... This paper investigates the properties of nonparametric decision tree models in the analysis of financial leverage decisions. This approach presents two appealing features: (i) the relationship between leverage and explanatory variables is not predetermined but is derived according to information pr ..."
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This paper investigates the properties of nonparametric decision tree models in the analysis of financial leverage decisions. This approach presents two appealing features: (i) the relationship between leverage and explanatory variables is not predetermined but is derived according to information
On idiosyncratic stochasticity of financial leverage effects
"... We model leverage as stochastic but independent of return shocks and of volatility and perform likelihood-based inference via the recently developed iterated filtering algorithm using S&P500 data, contributing new evidence to the still slim empirical support for random leverage variation. ..."
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We model leverage as stochastic but independent of return shocks and of volatility and perform likelihood-based inference via the recently developed iterated filtering algorithm using S&P500 data, contributing new evidence to the still slim empirical support for random leverage variation.
Results 1 - 10
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