Real Assets and Capital Structure
By Murillo Campello, Erasmo Giambona. Journal of Financial and Quantitative Analysis, 2013
195 citations recorded by the source corpus.
Abstract We characterize the relation between asset structure and capital structure by exploiting variation in the salability of corporate assets. To establish this link, we distinguish across different assets in firms’ balance sheets (machinery, land, and buildings) and use an instrumental approach that incorporates market conditions for those assets. We also use a natural experiment driving differential increases in the supply of real estate assets across the United States: The Defense Base Closure and Realignment Act of 1990. Consistent with a supply-side view of capital structure, we find that asset redeployability is a main driver of leverage when credit frictions are high.
Subfields: Accounting, Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/5f32b788c439ab27dff350d4405b57070702b7c4
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Citations in the corpus
- Intangible assets and capital structure (2020, unknown): “4 Campello and Giambona (2013) analyze the effects of different components of tangible assets on leverage.”
- Does Information Asymmetry Affect Corporate Tax Aggressiveness? (2017, methodology): “…in analyst coverage on tax avoidance, we compare, for each matching approach, the differences in tax avoidance for treated firm i 21 The Abadie and Imbens’ (2006) matching estimator approach has been used by, among others, Campello, Graham, and Harvey (2010) and Campello and Giambona (2013).”
- Enlarging the Contracting Space: Collateral Menus, Access to Credit, and Economic Activity (2016, unknown): “First, we follow Campello and Giambona (2013) in identifying information on the decomposition of firms’ fixed assets between: (1) machinery and equipment and (2) land and buildings.”
- Climate Risk and Capital Structure (2019, unknown): “12 As underlined by Campello and Giambona (2013), beyond standard proxies for tangibility, the redeployability of tangible assets is a main determinant of corporate leverage.”
- How Collateral Laws Shape Lending and Sectoral Activity (2016, unknown): “29 As explained in Campello and Giambona (2013), the 1984-1996 period is the only time frame for which Compustat decomposes the value of tangible assets into land and buildings (immovables) and machinery and equipment (movables).”