Asymmetric Capital Structure Adjustments: New Evidence from Dynamic Panel Threshold Models

IF 2.2 3区 经济学 Q2 BUSINESS, FINANCE
V. Dang, Minjoo Kim, Y. Shin
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引用次数: 78

Abstract

We develop a dynamic panel threshold model of capital structure to test the dynamic trade-off theory, allowing for asymmetries in firms’ adjustments toward target leverage. Our novel estimation approach is able to consistently estimate heterogeneous speeds of adjustment in different regimes as well as to properly test for the threshold effect. We consider several proxies for adjustment costs that affect the asymmetries in capital structure adjustments and find evidence that firms with large financing imbalance (or a deficit), large investment or low earnings volatility adjust faster than those with the opposite characteristics. Firms not only adjust at different rates but also seem to adjust toward heterogeneous leverage targets. Moreover, we document a consistent pattern that firms undertaking quick adjustment are over-levered with a financing deficit and rely heavily on equity issues to make such adjustment.
不对称资本结构调整:来自动态面板阈值模型的新证据
我们开发了一个资本结构的动态面板阈值模型来检验动态权衡理论,允许企业向目标杠杆调整的不对称性。我们的新估计方法能够一致地估计不同制度下的异质调整速度,并适当地测试阈值效应。我们考虑了影响资本结构调整不对称的调整成本的几个代理,并发现有证据表明,具有较大融资失衡(或赤字)、大投资或低收益波动性的公司比具有相反特征的公司调整得更快。公司不仅以不同的速度调整,而且似乎也朝着不同的杠杆目标调整。此外,我们记录了一种一致的模式,即进行快速调整的公司杠杆过高,融资赤字,严重依赖股权发行来进行这种调整。
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来源期刊
European Journal of Finance
European Journal of Finance BUSINESS, FINANCE-
CiteScore
5.40
自引率
8.00%
发文量
72
期刊介绍: The European Journal of Finance publishes a full range of research into theoretical and empirical topics in finance. The emphasis is on issues that reflect European interests and concerns. The journal aims to publish work that is motivated by significant issues in the theory or practice of finance. The journal promotes communication between finance academics and practitioners by providing a vehicle for the publication of research into European issues, stimulating research in finance within Europe, encouraging the international exchange of ideas, theories and the practical application of methodologies and playing a positive role in the development of the infrastructure for finance research.
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