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Equity Mispricing and Leverage Adjustment Costs
We find that equity mispricing impacts the speed at which firms adjust to their target leverage and does so in predictable ways depending on whether the firm is over- or underlevered. For example, firms that are above their target leverage and should therefore issue equity (or retire debt), adjust more rapidly toward their target when their equity is overvalued. However, when a firm is undervalued, but needs to reduce leverage, the speed of adjustment is much slower. Our findings support the role of equity mispricing as an important factor that alters the cost of making capital structure adjustments..Printed Journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| JFQA4703 | PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | Cambridge Cambridge University Press., |
|---|---|
| Edisi | - |
| Subjek | Capital structure Market timing Target Leverage Residual Income Model Equity Mispricing |
| ISBN/ISSN | - |
| Klasifikasi | - |
| Deskripsi Fisik | - |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |