Leverage and Cash Dynamics

IF 5.6 2区经济学 Q1 BUSINESS, FINANCE

Review of Finance Pub Date : 2022-07-05 DOI:10.1093/rof/rfac043

Harry DeAngelo, Andrei S Gonçalves, René M Stulz

引用次数: 0

Abstract

This paper documents new and empirically important interactions between cash-balance and leverage dynamics. Cash ratios typically vary widely over extended horizons, with dynamics remarkably similar to (and complementary with) those of capital structure. Leverage and cash dynamics interact approximately as predicted by the internal-versus-external funding regimes in Myers and Majluf (1984). Leverage is quite volatile when cash ratios are stable and vice-versa, while net-debt ratios are almost always volatile. Most firms increase leverage sharply as cash balances (internal funds) become scarce. Capital structure models that extend Hennessy and Whited (2005) to include cash-balance dynamics explain some, but not all, aspects of the observed relation between cash squeezes and leverage increases.

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杠杆和现金动态

本文记录了现金余额和杠杆动态之间新的和经验上重要的相互作用。现金比率通常在较长时期内变化很大，其动态与资本结构非常相似(并与之互补)。正如Myers和Majluf(1984)所预测的那样，杠杆和现金动态之间的相互作用近似于内部与外部融资机制。当现金比率稳定时，杠杆相当不稳定，反之亦然，而净负债率几乎总是不稳定的。由于现金余额(内部资金)变得稀缺，大多数公司急剧增加杠杆。将Hennessy和Whited(2005)扩展到包括现金平衡动态的资本结构模型解释了所观察到的现金紧缩与杠杆增加之间关系的某些方面，但不是全部。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Finance Multiple-

CiteScore

7.80

自引率

2.30%

发文量

期刊介绍： The Review of Finance, the official journal of the European Finance Association, aims at a wide circulation and visibility in the finance profession. The journal publishes high-quality papers in all areas of financial economics, both established and newly developing fields: • •Asset pricing •Corporate finance •Banking and market microstructure •Law and finance •Behavioral finance •Experimental finance Review of Finance occasionally publishes special issues on timely topics, including selected papers presented at the meetings of the European Finance Association or at other selected conferences in the field.