A STATE‐PREFERENCE MODEL OF OPTIMAL FINANCIAL LEVERAGE
Integrity signals
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Claims other papers make about this one
Each is checked against this paper’s own text: does it say what the citing paper says it does?
The trade-off theory supports a non-linear relationship between leverage and financial performance.
“Therefore, TOT supports the non-linear relationship (Kraus & Litzenberger, 1973).”
From The Impact of Liquidity and Leverage on the Financial Performance of the Johannesburg Stock Exchange-Listed Consumer Goods Firms (2025) · cites this paper as Kraus & Litzenberger, 1973
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Theory of the firm: Managerial behavior, agency costs and ownership structure
Jensen, M. C., & Meckling, W. H. (1976) · Journal of Financial Economics · doi:10.1016/0304-405x(76)90026-x · Cited by 71,491 · see citing works
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
Jensen (Deceased), M. C., & Meckling, W. H. (1998) · doi:10.2139/ssrn.94043 · Cited by 2,749 · see citing works
Why Do Corporations Give to Charity?
Navarro, P. (1988) · The Journal of Business · doi:10.1086/296420 · Cited by 549 · see citing works
Serrasqueiro, Z., & Caetano, A. (2014) · Journal of Business Economics and Management · doi:10.3846/16111699.2012.744344 · Cited by 218 · see citing works
Ayaz, M., Mohamed Zabri, S., & Ahmad, K. (2021) · Managerial Finance · doi:10.1108/mf-11-2019-0586 · Cited by 52 · see citing works
Umar, U. H., & Al-Faryan, M. A. S. (2024) · Managerial Finance · doi:10.1108/mf-12-2022-0606 · Cited by 22 · see citing works
Khoza, F. (2025) · Journal of Risk and Financial Management · doi:10.3390/jrfm18090510 · Cited by 10 · see citing works
Sardo, F., Serrasqueiro, Z., & Armada, M. R. (2022) · Research in International Business and Finance · doi:10.1016/j.ribaf.2022.101657 · Cited by 8 · see citing works
- Authors
- Kraus, A., & Litzenberger, R. H.
- Affiliations
- University of British Columbia (CA)
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1973-09
- Volume
- 28
- Issue
- 4
- Pages
- 911-922
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2121308228
- Cited by
- 2,599
- References
- 0
- Citations by year
- 2026: 96 · 2025: 177 · 2024: 179 · 2023: 184 · 2022: 156 · 2021: 189 · 2020: 192 · 2019: 134 · 2018: 134 · 2017: 107 · 2016: 121 · 2015: 133 · 2014: 114 · 2013: 87 · 2012: 75
- FWCI
- 66.77
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Journal of Finance (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
- Social Sciences › Business, Management and Accounting › Strategy and Management › Financial Reporting and Valuation Research
- Keywords
- capital structure, corporate finance, risk preferences
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
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