Two Common Problems in Capital Structure Research: The Financial-Debt-To-Asset Ratio and Issuing Activity Versus Leverage Changes

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In Search of Robust Methods for Dynamic Panel Data Models in Empirical Corporate Finance (2015, unknown): “, 2008), the presence of measurement errors (Welch, 2011; Roberts and Whited, 2011), or the use of an incorrect functional form (e.”
Dynamic Capital Structure Adjustment and the Impact of Fractional Dependent Variables (2015, unknown): “25Also, it is not obvious whether a measure of leverage incorporating nonfinancial liabilities is suitable for the analysis of dynamic capital structure adjustment (Welch (2011)). https://doi.org/10.1017/S0022109015000496 D ow nloaded from https://w w w .cam bridge.org/core .”
Capital Structure Decisions around the World: Which Factors Are Reliably Important? (2015, unknown): “Second, Welch (2011) argues that leverage should be measured by the ratio of debt to invested capital.”
Firm Age, Corporate Governance, and Capital Structure Choices (2018, unknown): “Second, as Welch (2011) points out, many empirical capital structure studies use measures for which increases in debt do not necessarily imply increases in equity, or vice versa.”
Human Capital, Capital Structure, and Employee Pay: An Empirical Analysis (2013, methodology): “We follow Welch (2011) and introduce two additional measures of leverage, which we refer to as “alternative market leverage” and “alternative book leverage””