Webcess to external markets, but only 17.1 percent for firms with more restrictive ac-cess to external capital markets2. Similarly, Byoun (2008) reports that the adjustment speed is around 33 percent when firms have above-target debt with a financial surplus but about 20 percent when firms have below-target debt with a financial deficit. WebSoku Byoun. Journal of Finance, 2008, vol. 63, issue 6, 3069-3096. Abstract: If firms adjust their capital structures toward targets, and if there are adverse selection costs associated …
Byoun, S. (2007) Financial Flexibility, Leverage, and Firm …
WebDec 1, 2024 · Following a different approach, Byoun (2008) considers the role played by financial flexibility on SOA, finding that firm’s adjustments toward the target are conditioned by financing surplus and financing deficits. For example, firms with a financial surplus adjust more quickly when they have an above-target debt and more slowly when they ... WebMar 19, 2011 · Soku Byoun Economics 2008 If firms adjust their capital structures toward targets, and if there are adverse selection costs associated with asymmetric information, … blakely elementary mithun
Government intervention, leverage adjustment, and firm …
WebABSTRACT: In this paper, we analyze the low-leverage phenomenon of firms and examine the question of why some firms have low leverage in China. We find Low-leverage firms are smaller, have higher profitability and hold more cash balances than control firms chosen by industry and size. Weband avoiding the costs of issuing equity (a3 < 0 and large). On the other hand, firms with deficits and below-target debt may find it easier to increase their leverage (a6 > 0 and large). Byoun (2008) claims that these incentives are not as great for firms with surpluses and below-target debt or for firms with deficits and above-target debt. WebMay 25, 2024 · To derive industry variations of Mexican listed firms’ capital structure adjustment behavior, we estimate Eq. ( 3) across seven industries including … fragility fx