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Cited by 372

The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.

A Dynamic Model of Optimal Capital Structure

Titman, Sheridan, Tsyplakov, Sergey·2007·Review of Finance
DOI 10.1093/rof/rfm017
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Abstract

This paper presents a continuous time model of a firm that can dynamically adjust both its capital structure and its investment choices. In the model we endogenize the investment choice as well as firm value, which are both determined by an exogenous price process that describes the firm's product market. Within the context of this model we explore cross-sectional as well as time-series variation in debt ratios. We pay particular attention to interactions between financial distress costs and debtholder/equityholder agency problems and examine how the ability to dynamically adjust the debt ratio affects the deviation of actual debt ratios from their targets. Regressions estimated on simulated data generated by our model are roughly consistent with actual regressions estimated in the empirical literature.

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Metadata

Authors
Titman, S., & Tsyplakov, S.
Venue
Review of Finance
Publisher
Oxford University Press (OUP)
Published
2007-01-01
Volume
11
Issue
3
Pages
401-451
ISSN
  • 1382-6662 (ISSN-L)
  • 1573-692X
  • 1572-3097
DOI
10.1093/rof/rfm017
OpenAlex
W2740766300
Cited by
372
References
3
FWCI
61.02
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: A Dynamic Model of Optimal Capital Structure. https://app.cochat.ai/papers/10.1093/rof/rfm017
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Titman, S., & Tsyplakov, S. (2007). A Dynamic Model of Optimal Capital Structure. Review of Finance. https://doi.org/10.1093/rof/rfm017

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.