2018/11/11 by Andreas Kaloudis, Kaloudis, Andreas, Dimitrios Tsolis +1
Business, Management and Accounting · #Corporate Finance and Governance #Econometrics (econ.EM) #FOS: Economics and business #General Economics (econ.GN)
paper · pdf · doi:10.48550/arxiv.1811.04473
openalex publication_date 2018/11/11 · openalex created_date 2022/08/02 · openalex updated_date 2026/07/28
The major perspective of this paper is to provide more evidence regarding how\n"quickly", in different macroeconomic states, companies adjust their capital\nstructure to their leverage targets. This study extends the empirical research\non the topic of capital structure by focusing on a quantile regression method\nto investigate the behavior of firm-specific characteristics and macroeconomic\nfactors across all quantiles of distribution of leverage (book leverage and\nmarket leverage). Therefore, depending on a partial adjustment model, we find\nthat the adjustment speed fluctuated in different stages of book versus market\nleverage. Furthermore, while macroeconomic states change, we detect clear\ndifferentiations of the contribution and the effects of the firm-specific and\nthe macroeconomic variables between market leverage and book leverage debt\nratios. Consequently, we deduce that across different macroeconomic states the\nnature and maturity of borrowing influence the persistence and endurance of the\nrelation between determinants and borrowing.\n