Target Behavior and Financing: How Conclusive is the Evidence?

By Xin Chang, Sudipto Shankar Dasgupta. 2009

337 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/0fda6e48dbe67088c9b6ec020a42aeba5138a895

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Citations in the corpus

Testing Theories of Capital Structure and Estimating the Speed of Adjustment (2009, background): “Chang and Dasgupta (2009) also show that some of the evidence in the actual data can only be replicated if their simulation samples are modified to accommodate market timing behavior.”
Why Has the Value of Cash Increased Over Time? (2018, neutral): “…specification of equation (5).20 We first 19In the capital structure literature, see Taggart (1977), Auerbach (1985), Shyam-Sunder and Myers (1999), Fama and French (2002), Welch (2004), Flannery and Rangan (2006), Lemmon, Roberts, and Zender (2008), and Chang and Dasgupta (2009), among others.”
The Dynamics of Cash (2010, background): “4 More recent examples include Shyam-Sunder and Myers (1999), Welch (2004), and Chang and Dasgupta (2009).”
An empirical analysis of zero-leverage firms: New evidence from the UK ☆ (2013, background): “In particular, the evidence of leverage rebalancing may be driven by mechanical mean reversion (Chang and Dasgupta, 2009).”
Why are firms unlevered (2012, neutral): “However, Chang and Dasgupta (2008) use simulations and show that similar results are also obtained when firms follow a random financing policy, suggesting that it is difficult to draw reliable inferences about the speed of adjustment from these studies. which represents almost 60% of the leverage…”
Institutional Determinants of Capital Structure Adjustment Speeds (2012, background): “Shyam-Sunder and Myers (1999), Chen and Zhao (2007), Chang and Dasgupta (2009), and Hovakimian and Li (2011) argue that mechanical mean reversion can lead to an upward bias in adjustment speeds, which can prevent the model from rejecting the null hypothesis that the adjustment speed is zero.”
Employee Treatment and Firm Leverage: A Test of the Stakeholder Theory of Capital Structure (2011, positive): “…we use a regression model that allows us to make slow adjustments to the capital structure (Fama and French, 2002; Flannery and Rangan, 2006; Lemmon, Roberts, and Zender, 2008; Antoniou, Guney, and Paudyal, 2008; Huang and Ritter, 2009; Banerjee, Dasgupta, and Kim, 2008; Chang and Dasgupta, 2009).”
Debt Capacity and Tests of Capital Structure Theories (2010, background): “Chang and Dasgupta (2009) show that random financing can replicate a number of stylized facts related to target adjustment behavior and conclude that a number of standard tests of target adjustment behavior have little power to reject alternative explanations for financing behavior.”
Two Common Problems in Capital Structure Research: The Financial-Debt-To-Asset Ratio and Issuing Activity Versus Leverage Changes (2011, background): “This was pointed out by Chang and Dasgupta (2009).”