Back to the Beginning: Persistence and the Cross-Section of Corporate Capital Structure

By Mike Lemmon, Michael R. Roberts, Jaime F. Zender. 2008

1,781 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/2e2e996fe02f574b2465383188d827f4e47769b2

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Citations in the corpus

Corporate Leverage: How Much Do Managers Really Matter? (2007, positive): “For completeness in column (3) we follow Lemmon et al. (2007) by including the initial leverage as a factor.”
Government debt and corporate leverage: International evidence (2019, background): “measure stock market development by Levine and Zervos (1998) and to measure the ease of access to the stock market by Beck, Lundberg, and Majnoni (2006). Equity Trading is defined as the total volume of stocks traded as a percentage of the market capitalization of traded stocks.”
Capital Structure Dynamics and Transitory Debt (2011, positive): “Section 3 shows that the model generates long-horizon leverage paths that qualitatively conform to those documented by Lemmon, Roberts, and Zender (2008), and explains the empirically important distinction between long-run average leverage and target leverage.”
Empirical Capital Structure: A Review (2009, positive): “Huang and Ritter (2008) take the SOA estimation one step further, arguing that the system GMM estimates in Lemmon et al. (2008) is biased when the autoregressive parameter is highly persistent.”
Do Nonfinancial Stakeholders Affect the Pricing of Risky Debt? Evidence from Unionized Workers (2012, positive): “Several studies have shown that industry leverage predicts firm leverage and Lemmon et al. (2008) show that a firm’s initial leverage has significant power to predict its future leverage.”
Capital structure decisions: Evidence from deregulated industries (2010, positive): “…an earnings volatility variable, the timeseries standard deviation of firm’s earnings, StDev(Ebitta)it 1, as a measure of the expected costs of 12 Lemmon, Roberts, and Zender (2008) report that the inclusion of firm fixed effects reduces the economic significance of leverage determinants in Eqs.”
What do we know about the capital structure of small firms? (2012, positive): “Lemmon et al. (2008) have shown on the U.S. firm panel that the majority of leverage variation is time-invariant.”
Debt Financing and Financial Flexibility Evidence from Proactive Leverage Increases (2012, positive): “In addition, we estimate target leverage ratio using the system GMM procedure described in Lemmon, Roberts, and Zender (2008).”