What determines the speed of adjustment to the target capital structure?

By W. Drobetz, Gabrielle Wanzenried. 2006

369 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/0385220adbb0638d0a973765619411a980f9953a

How researchers see this paper

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In Accounting

1. Özde Öztekin
2. Yongcheol Shin
3. Vi Dang
4. J. López-Gracia
5. Ya‐Kai Chang
6. Robin K. Chou
7. Tai-Hsin Huang
8. Min-Joo Kim

In Economics and Econometrics

1. Özde Öztekin
2. J. López-Gracia
3. Francisco Sogorb-Mira
4. Ya‐Kai Chang
5. Min-Joo Kim
6. Robin K. Chou
7. Vi Dang
8. Mark J. Flannery

In Finance

1. Özde Öztekin
2. Yongcheol Shin
3. Vi Dang
4. Min-Joo Kim
5. Ya‐Kai Chang
6. Robin K. Chou
7. Tai-Hsin Huang
8. J. López-Gracia

Citations in the corpus

• Macroeconomic Conditions and Capital Structure Adjustment Speed (2010, neutral): “Two-stage dynamic partial-adjustment capital structure model We utilize a dynamic partial-adjustment capital structure model (Hovakimian et al., 2001; Drobetz and Wanzenried, 2006), which allows target debt ratios to vary both across firms and over time, and implies that deviations from targets are ”
• Asymmetric Capital Structure Adjustments: New Evidence from Dynamic Panel Threshold Models (2012, background): “…empirical studies have examined the relations between the speed of capital structure adjustment and firm-specific and macroeconomic variables (e.g., Drobetz and Wanzenried, 2006; Drobetz et al., 2006) and the impact of financial constraints and/or financing gaps on the asymmetry in such adjustment…”
• Testing trade-off and pecking order theories financing SMEs (2008, background): “transaction costs. In short, if the target-adjustment coefficient, k, falls between 0 and 1, it follows that the firm will gradually bring its debt level in line with its target over time (see Drobetz and Wanzenried 2006 ).”
• Corporate Governance and the Dynamics of Capital Structure: New Evidence (2014, positive): “Second, because investment opportunities often require additional funding in excess of profits, leverage must be increased according to the pecking order theory (Drobetz and Wanzenried, 2006).”
• Institutional Determinants of Capital Structure Adjustment Speeds (2012, background): “Drobetz and Wanzenried (2006) show faster adjustment for Swiss firms that grow more rapidly or are further away from their optimal leverage.”