Capital Structure Choice: Macroeconomic Conditions and Financial Constraints

By Robert A. Korajczyk, Amnon Levy. 2003

1,123 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/45bdb421f091af00f19fd49555614f29809ee143

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Citations in the corpus

Testing Theories of Capital Structure and Estimating the Speed of Adjustment (2009, neutral): “which debt or equity increases by more than 5% of beginning-of-year assets, the same definition that has been used, for example, in Hovakimian, Hovakimian, and Tehranian (2004) and Korajczyk and Levy (2003).”
Debt Capacity and Tests of Capital Structure Theories (2010, methodology): “Based on a modified version of the Shyam-Sunder and Myers (1999) test that is shown to have power against relevant alternatives, we find that the pecking order theory provides a good description of financing behavior for a broad cross-section of firms examined over an extended time period.”
Corporate Governance and the Dynamics of Capital Structure: New Evidence (2014, background): “We describe in the text but do not report in the table our corporate governance determinants of leverage as in Korajczyk and Levy (2003) and our standard set of firm determinants of leverage.”
Equity market timing and capital structure: International evidence (2008, neutral): “Recent studies have linked capital structure with the nature of institutions existing within countries (Giannetti, 2003; Demirguc-Kunt and Maksimovic, 2002) and with the prevailing macroeconomic conditions (Korajczyk and Levy, 2003; Drobetz et al., 2006).”
As Certain as Debt and Taxes: Estimating the Tax Sensitivity of Leverage from State Tax Changes (2015, positive): “Early cross-sectional studies such as MacKie-Mason (1990) and Graham (1996) found a positive correlation between a firm’s estimated or simulated marginal tax rate and its debt policy.”
Why Does Capital Structure Choice Vary with Macroeconomic Conditions (2007, neutral): “For example, during both expansions of the 1970s, the equity market preformed poorly and the average price drop upon an equity issue announcement was relatively large, yet equity issues as a fraction of total external financing was relatively high.7 Moreover, Korajczyk and Levy (2000) document that ”
The Determinants of Capital Structure: Capital Market-Oriented versus Bank-Oriented Institutions (2008, neutral): “For the same reason Korajczyk and Levy (2003), MacKay and Phillips (2005) and Mao (2003), among others, also use the GMM technique with the same type of dependent variable.”
Carbon risk and corporate capital structure (2020, positive): “The trade-off theory of capital structure posits that firms choose the mix of debt and equity financing to balance the tax shield benefits and the risk and costs of financial distress associated with debt financing (Kraus and Litzenberger (1973), Scott Jr (1976), Bradley, Jarrell, and Kim (1984), Gr”
What do we know about the capital structure of small firms? (2012, positive): “Korajczyk and Levy (2003) show that for U.S. firms, macroeconomic variables can explain as high a share of leverage variation as firm factors.”
Macroeconomic Conditions and Capital Structure Adjustment Speed (2010, positive): “They also show that the importance of firm fixed effects is reduced after controlling for the non-linear nature of the conditional expectation function, Studies show that capital structure choice varies over time and across firms and that macroeconomic conditions are important factors in analyzing f”
Partial Adjustment Toward Target Capital Structures (2006, background): “4 Korajczyk and Levy [2002] find that corporate sector profits, equity returns, and the commercial paper spread affect firms target leverage ratios. (5)Jalilavand and Harris [1984] find reasonable coefficient estimates for equation (2) and reasonable adjustment speeds when they use such a trailing ”