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Cited by 717

The DOI matches its Crossref record; 11 of the 11 references it cites were found in a registry or an index.

Debt Dynamics

Open access
HENNESSY, CHRISTOPHER A., WHITED, TONI M.·2005·The Journal of Finance
DOI 10.1111/j.1540-6261.2005.00758.x
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Abstract

We develop a dynamic trade‐off model with endogenous choice of leverage, distributions, and real investment in the presence of a graduated corporate income tax, individual taxes on interest and corporate distributions, financial distress costs, and equity flotation costs. We explain several empirical findings inconsistent with the static trade‐off theory. We show there is no target leverage ratio, firms can be savers or heavily levered, leverage is path dependent, leverage is decreasing in lagged liquidity, and leverage varies negatively with an external finance weighted average Q. Using estimates of structural parameters, we find that simulated model moments match data moments.

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Crossref · 10.1111/j.1540-6261.2005.00758.x

Cites

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Metadata

Authors
HENNESSY, C. A., & WHITED, T. M.
Venue
The Journal of Finance
Publisher
Wiley
Published
2005-05-03
Volume
60
Issue
3
Pages
1129-1165
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/j.1540-6261.2005.00758.x
OpenAlex
W4246259718
Cited by
717
References
11
FWCI
116.51
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Debt Dynamics. https://app.cochat.ai/papers/10.1111/j.1540-6261.2005.00758.x
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HENNESSY, C. A., & WHITED, T. M. (2005). Debt Dynamics. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2005.00758.x

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.