Do Firms Have Leverage Targets? Evidence from Acquisitions

By Jarrad Harford, Sandy Klasa, N. Walcott. 2009

378 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/4e919eb072b5aeac4e006a5c172bb86a3ce9481f

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Citations in the corpus

Capital Structure Dynamics and Transitory Debt (2011, neutral): “The model that includes endogenous default replaces the upper bound on leverage, p, with the following mechanism, which is similar to that in Hennessy and Whited (2007) and Cooley and Quadrini (2001), except that physical adjustment costs prevent the firm from costlessly transforming capital into li”
Financing Major Investments: Information About Capital Structure Decisions (2014, background): “Harford et al. (2006) argue that capital structure adjustments also may be relatively inexpensive when firms choose how to finance large acquisitions, which often require them to raise substantial external funds.”
Shared Auditors in Mergers and Acquisitions (2016, neutral): “…that smaller auditors provide greater 5 See, for example, Officer, Poulsen, and Stegemoller (2009), Povel and Singh (2006), Bharadwaj and Shivdasani, (2003), Harford, Klasa, and Walcott (2009), Fishman (1989), Kohers and Ang (2000), Mantecon (2009), Houston and Ryngaert (2012), and Officer (2004).”
Credit Ratings and the Choice of Payment Method in Mergers and Acquisitions (2014, neutral): “Consistent with Faccio and Masulis (2005) and Harford et al. (2009), we also take into account the target status.”
Debt Financing and Financial Flexibility Evidence from Proactive Leverage Increases (2012, neutral): “We follow Harford et al. (2009) in our definition of market leverage and estimation of long run target leverage: 9 34 9 34 199 x 25”
Deviation from the Target Capital Structure and Acquisition Choices (2011, neutral): “6 Studies on the role of financing frictions on investment decisions include, but are not limited to, Myers (1977), Myers and Majluf (1984), Greenwald, Stiglitz and Weiss (1984), Hart and Moore (1995) and Lang et al.”
Bond market access and investment (2014, background): “As most cash deals are financed with debt (Bharadwaj and Shivdasani, 2003; Harford et al., 2009), these findings provide preliminary evidence on the importance of access to debt markets in financing acquisitions.”