Do Firms Rebalance Their Capital Structures

By Mark T. Leary, Michael R. Roberts. 2005

1,491 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/734d437a203ff40d38baddbb5c1a7d84bac5ac2a

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Citations in the corpus

The Cost of Debt (2010, positive): “This asymmetry of higher costs to being overlevered than underlevered is consistent with the rebalancing behavior documented in Leary and Roberts (2005). In extreme cases (99th percentile), the cost of overlevering can be as high as 32.”
Financial Flexibility and Capital Structure Decision (2011, background): “; why do firms issue too much equity (Frank and Goyal (2003)) at the wrong times (Fama and French (2002), Fama and French (2005), and Leary and Roberts (2005))?”
Financial Innovations and Macroeconomic Volatility (2006, neutral): “See, for example, Choe, Masulis & Nanda (1993), Covas and den Haan (2005), Leary and Roberts (2005) , and Levy & Hennessy (2005).”
The Structure and Pricing of Corporate Debt Covenants (2015, result): “Similar adjustments are common among many empirical studies using the COMPUSTAT database (e.g. Baker and Wurgler (2002), Frank and Goyal (2003) and Leary and Roberts (2003)).”
Bank Loan Supply, Lender Choice, and Corporate Capital Structure (2009, background): “First, the transaction costs associated with floating public debt imply firms will issue larger amounts (Stafford (2001)) and retire less frequently (Leary and Roberts (2005)).”
A Resolution of the Distress Risk and Leverage Puzzles in the Cross Section of Stock Returns (2010, background): “(2001), Fama and French (2002), Koraczyk and Levy (2003), Fama and French (2005), Hennessy and Whited (2005), Faulkender and Petersen (2006), Leary and Roberts (2005), Kayhan and Titman (2007)].”
Tax Avoidance and Ex Ante Cost of Capital (2017, neutral): “The tradeoff theory of capital structure (Leary and Roberts 2005) holds that companies determine target capital structures by weighing the costs and benefits of debt financing and that firms’ convergence to these targets depends on various adjustments costs.”
The Dynamic Adjustment Towards Target Capital Structures of Firms in Transition Economies (2006, background): “One of the first papers to model and estimate a financial ratio adjustment process was Lev (1969). He assumes that firms’ target capital structure equals the (past) industry-wide average capital structure.”
The Determinants of Capital Structure: Capital Market-Oriented versus Bank-Oriented Institutions (2008, neutral): “19 and Mao (2003). The long-term coefficient (table 6) is largest in Germany, followed by Japan and France respectively.”
The Pecking Order, Debt Capacity, and Information Asymmetry (2010, neutral): “For consistency with the assumptions of the Myers and Majluf (1984) model, our construction of issuance decisions is motivated by a desire to isolate those financing decisions most likely intended to fund investment.”