The DOI matches its Crossref record; 3 of the 3 references it cites were found in a registry or an index.
Bankruptcy Risk and Optimal Capital Structure
Abstract
This study finds shortcomings in empirical tests of the capital structure irrelevance hypothesis. The alternative hypothesis is that firms choose value maximizing mixes of debt and equity on account of bankruptcy costs and the tax deductibility of interest payments. Based upon the cross‐sectional implications of the tax shelter‐bankruptcy cost hypothesis, an alternative test of the irrelevance hypothesis is performed. The test examines the relationship between failure rates and leverage ratios for 36 lines of business. The results are inconsistent with the irrelevance hypothesis.
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Citations
Cites
Determinants of corporate borrowing
Myers, S. C. (1977) · Journal of Financial Economics · doi:10.1016/0304-405x(77)90015-0 · Cited by 13,169
The Determination of Financial Structure: The Incentive‐Signalling Approach,
Ross, S. A. (1977) · The Bell Journal of Economics · doi:10.2307/3003485 · Cited by 4,168
Miller, M. H. (1977) · The Journal of Finance · doi:10.1111/j.1540-6261.1977.tb03267.x · Cited by 2,898
Cited by
The Determinants of Capital Structure Choice
TITMAN, S., & WESSELS, R. (1988) · The Journal of Finance · doi:10.1111/j.1540-6261.1988.tb02585.x · Cited by 6,112
HOW FIRM CHARACTERISTICS AFFECT CAPITAL STRUCTURE: AN INTERNATIONAL COMPARISON
Wald, J. K. (1999) · Journal of Financial Research · doi:10.1111/j.1475-6803.1999.tb00721.x · Cited by 893
Determinants of small firm debt ratios: An analysis of retail panel data
van der Wijst, N., & Thurik, R. (1993) · Small Business Economics · doi:10.1007/bf01539318 · Cited by 256
Metadata
- Authors
- CASTANIAS, R.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1983-12
- Volume
- 38
- Issue
- 5
- Pages
- 1617-1635
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2114874221
- Cited by
- 328
- References
- 3
- FWCI
- 10.15
- Type
- journal article
- Language
- en
- Open access
- closed
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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.
