Testing Theories of Capital Structure and Estimating the Speed of Adjustment

By Rongbing Huang, Jay R. Ritter. Journal of Financial and Quantitative Analysis, 2009

885 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/f31d760218cd1ebe91a3f237f50aad722d084ce7

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Citations in the corpus

Dynamic Capital Structure Adjustment and the Impact of Fractional Dependent Variables (2015, positive): “, endogeneity), which renders FE biased for fixed T (and OLS or Fama–MacBeth (1973) regressions as well; see Nickell (1981)).10 The bias-corrected LSDVC estimator of Kiviet (1995) uses fixed effects and applies a bias correction.”
Market Timing, Investment, and Risk Management (2012, positive): “To make our point in the simplest possible setting, consider a firm currently in the (11)See Campello, Graham, and Harvey (2009), Ivashina and Scharfstein (2009), and Campello, Giambona, Graham, and Harvey (2010). (12)See Shleifer and Vishny, 1992, Acharya and Viswanathan, 2010, Campello, Graham and”
Bank capital management: International evidence (2015, background): “firms in Lemmon et al. (2008), and 0.21 for corporations worldwide in Oztekin and Flannery (2012), both of which use system GMM) and large banks (0.”
Corporate Governance and the Dynamics of Capital Structure: New Evidence (2014, positive): “, Jensen, 1986; Zwiebel, 1996; Morellec, 2004). Morellec et al. (2012) suggest that a firm’s capital structure should be determined by not only taxes, the costs of refinancing, and bankruptcy costs but also the severity of manager–shareholder conflicts.”
Estimating Dynamic Panel Models in Corporate Finance (2013, methodology): “In applying the long difference estimator to unbalanced Compustat panels, Huang and Ritter (2009) use the same differencing interval for all firms, regardless of their panel lengths.”
Two Common Problems in Capital Structure Research: The Financial-Debt-To-Asset Ratio and Issuing Activity Versus Leverage Changes (2011, background): “Some authors, such as Fama and French (2005) and Huang and Ritter (2009), have made further adjustments to the debt numerator: They have considered preferred stock (PSTKL) to be debt, but not convertible debt (DCVT).”
Board Expertise: Do Directors from Related Industries Help Bridge the Information Gap? (2014, positive): “15 We follow Baker and Wurgler (2002), Fama and French (2002), and Huang and Ritter (2009) in constructing Book_Leverage, and our descriptive statistics are similar to those reported by these authors.”
Capital Structure Decisions around the World: Which Factors Are Reliably Important? (2015, positive): “…LEV ∗ ij , t is unobservable, substituting equation (2) into equation (1) yields the following: (3) However, equation (3) requires instruments for the endogenous transformed lagged-dependent variable and a correction for the short panel bias (Blundell and Bond (1998), Huang and Ritter (2009)).”
The Dynamics of Cash (2010, methodology): “LD (long differencing) estimator is similar to the one proposed by Hahn, Hausman, and Kuersteiner (2007) and implemented by Huang and Ritter (2009) using 2SLS: , , 1 ∙ 32 Firm Characteristic Variables: Cash Flow is measured as earnings less interest and taxes (ibq+dpq), divided by total assets…”
Institutions and corporate capital structure in the MENA region (2016, neutral): “…sharing and credit reporting systems that provide lenders positive and negative data on borrowers also support access to credit as they alleviate one of the major problems facing credit institutions – information asymmetry (See for instance, Jappelli and Pagano (2002) for empirical evidence).”