The DOI matches its Crossref record; 4 of the 4 references it cites were found in a registry or an index.
Dynamic Capital Structure Choice: Theory and Tests
Abstract
This paper develops a model of dynamic capital structure choice in the presence of recapitalization costs. The theory provides the optimal dynamic recapitalization policy as a function of firm‐specific characteristics. We find that even small recapitalization costs lead to wide swings in a firm's debt ratio over time. Rather than static leverage measures, we use the observed debt ratio range of a firm as an empirical measure of capital structure relevance. The results of empirical tests relating firms' debt ratio ranges to firm‐specific features strongly support the theoretical model of relevant capital structure choice in a dynamic setting.
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Citations
Cites
MYERS, S. C. (1984) · The Journal of Finance · doi:10.1111/j.1540-6261.1984.tb03646.x · Cited by 7,526
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 · cited 2×
“Titman [31] and Titman and Wessels [32] argue that machine and equipment manufacturing firms will impose especially high bankruptcy costs on customers, suppliers, and workers.”
BackgroundMethodThe 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
Capital structure decisions: Which factors are reliably important?
Frank, M. Z., & Goyal, V. K. (2009) · Financial Management · doi:10.1111/j.1755-053x.2009.01026.x · Cited by 2,859
Endogeneity in Empirical Corporate Finance1
Roberts, M. R., & Whited, T. M. (2013) · Handbook of the Economics of Finance · doi:10.1016/b978-0-44-453594-8.00007-0 · Cited by 2,459
Testing Static Trade-off Against Pecking Order Models of Capital Structure
Shyam-Sunder, L., & Myers, S. (1994) · doi:10.3386/w4722 · Cited by 1,165
Institutional determinants of capital structure adjustment speeds
Öztekin, Ö., & Flannery, M. J. (2012) · Journal of Financial Economics · doi:10.1016/j.jfineco.2011.08.014 · Cited by 616
A Review of Empirical Capital Structure Research and Directions for the Future
Graham, J. R., & Leary, M. T. (2011) · Annual Review of Financial Economics · doi:10.1146/annurev-financial-102710-144821 · Cited by 547
Metadata
- Authors
- FISCHER, E. O., HEINKEL, R., & ZECHNER, J.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1989-03
- Volume
- 44
- Issue
- 1
- Pages
- 19-40
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2037841399
- Cited by
- 1,571
- References
- 4
- FWCI
- 29.35
- Type
- journal article
- Language
- en
- Open access
- closed
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- FISCHER, E. O., HEINKEL, R., & ZECHNER, J. (1989). Dynamic Capital Structure Choice: Theory and Tests. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1989.tb02402.x
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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.
