An EBIT-Based Model of Dynamic Capital Structure

By Robert S. Goldstein, Nengjiu Ju, Hayne E. Leland. 2001

1,039 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/88ab0a7c88bba63235d19c2caece9a146a603ca6

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Citations in the corpus

Taxes and Corporate Finance: A Review (2003, neutral): “These results are consistent with survey evidence that interest tax deductibility is an important factor affecting debt policy decisions (ranking below only maintaining financial flexibility, credit ratings, and earnings volatility), and is especially important for large industrial firms [Graham and”
Capital Structure Dynamics and Transitory Debt (2011, background): “…target leverage differentiates our analysis from static trade-off models and from the multi-period contingent claims generalizations thereof that assume exogenous investment and positive leverage rebalancing costs, e.g., Fischer, Heinkel, and Zechner (1989) and Goldstein, Ju, and Leland (2001).”
Optimal Priority Structure, Capital Structure, and Investment (2012, neutral): “• If firms can refinance in the future they opt for less debt today to decrease chances of distress (Goldstein, Ju, and Leland (2001)).”
The expected cost of default (2016, background): “While perhaps limiting, this assumption is common to other dynamic capital structure models, such as, Goldstein, Ju, and Leland (2001), Chen (2010), and Bhamra, Kuehn, and Strebulaev (2009a,b).”
Corporate Governance and Capital Structure Dynamics (2012, neutral): “These features are shared with numerous other capital structure models, including Leland (1998), Goldstein, Ju, and Leland (2001), Hackbarth, Miao, and Morellec (2006), and Strebulaev (2007).”
An empirical analysis of zero-leverage firms: New evidence from the UK ☆ (2013, methodology): “This robustness check is useful because most theoretical models of capital structure do not account for the optimality of zero leverage (e.g., Goldstein et al., 2001; Ju et al., 2005) while, empirically, having such a marginal debt presence can still be considered a case of debt conservatism…”
Capital Structure and Asset Prices: Some Effects of Bankruptcy Procedures (2004, background): “Goldstein et al. (2001) analyze endogenous leverage changes. 2. The tax shield provided by debt financing is the only motive for issuing debt in the present model. Morellec (2004) develops a model of leverage choices where debt financing also increases firm value by constraining management’s choice ”
Dividend Dynamics and the Term Structure of Dividend Strips (2015, positive): “Further, dynamic models of optimal capital structure by Fischer, Heinkel, and Zechner (1989), and Goldstein, Ju, and Leland (2001) find that firm value is maximized when a firm acts to keep its leverage ratio within a certain band.”
Optimal Capital Structure and Industry Dynamics (2005, neutral): “Leland (1994, 1998), Leland and Toft (1996), Goldstein, Ju, and Leland (2001), and Morellec (2001) analyze corporate asset valuation and optimal capital structure using analytical methods.”
A Simple Robust Link between American Puts and Credit Protection (2011, background): “Theoretical work on strategic default includes Leland (1994), Leland and Toft (1996), Anderson and Sundaresan (1996), Mella-Barral and Perraudin (1997), Fan and Sundaresan (2000), Goldstein, Ju, and Leland (2001), Broadie, Chernov, and Sundaresan (2007), and Hackbarth, Hennessy, and Leland (2007).”
The Levered Equity Risk Premium and Credit Spreads: A Unified Framework (2010, methodology): “To introduce benchmark corporate securities, equity and debt, we follow standard EBIT-based capital structure models (see e.g. Goldstein et al. (2001), Hackbarth, Hennessy, and Leland (2007), and Strebulaev (2007)) where the earnings of a firm, X, are split between a coupon, c, promised to…”