The Net Benefits to Leverage

By Arthur Korteweg. 2010

402 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/78eca4d5ea27cf9da0e3eee9fbbe2c81fd7bf8e4

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Citations in the corpus

Tax Rates and Corporate Decision Making (2017, neutral): “33 That many firms are conservatively levered is also consistent with prior research (van Binsbergen et al., 2010; Korteweg, 2010) and the observation that the cost of being overlevered is asymmetrically higher than the cost of being underlevered (Leary and Roberts, 2005; van Binsbergen et al.”
Equity Mispricing and Leverage Adjustment Costs (2012, neutral): “10 The notable exception being Korteweg (2009), who uses a different method for estimating the target leverage.”
Cash Flows and Leverage Adjustments (2012, neutral): “Korteweg (2010) estimates that below the firm’s optimal leverage ratio, the value function of the firm relative to further reductions has a rather flat slope.”
Corporate Governance and Capital Structure Dynamics (2012, neutral): “Finally, our research relates to the recent papers of van Binsbergen, Graham, and Yang (2010) and Korteweg (2010), who provide empirical estimates of the costs of debt as perceived by the agent optimizing financing decisions.”
Macroeconomic Conditions and the Puzzles of Credit Spreads and Capital Structure (2010, neutral): “Examples of indirect costs include debt overhang (Myers (1977)), asset substitution (Jensen and Meckling (1976)), as well as losses of human capital.”
From Finance to Marketing: The Impact of Financial Leverage on Customer Satisfaction (2015, result): “This suggests that, on average, the benefits of leverage outweigh its costs and lead to higher firm value, which is consistent with prior finance literature (Korteweg 2010).”
An empirical analysis of zero-leverage firms: New evidence from the UK ☆ (2013, background): “This is a significant omission because studying zero-leverage firms can help us to better understand the related ‘low-leverage puzzle’ (Korteweg, 2010; Strebulaev and Yang, 2012), and overcome the methodological difficulties in identifying what constitutes a low-leverage policy (Devos et al.”
Talent in Distressed Firms: Investigating the Labor Costs of Financial Distress (2018, background): “…education, and occupational choices, as 1 Altman (1984), Cutler and Summers (1988), Andrade and Kaplan (1998), Almeida and Philippon (2006), and Korteweg (2010) are some valiant attempts at capturing these overall costs. well as employment outcomes (e.g., Heckman, Stixrud, and Urzua 2006);…”