Horses and Rabbits? Trade-Off Theory and Optimal Capital Structure

By Nengjiu Ju, R. Parrino, Allen M. Poteshman, Michael S. Weisbach. Journal of Financial and Quantitative Analysis, 2005

184 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/fefe50662db374443b6048c5fb860b28c142c4bf

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Murray Z. Frank
2. Vidhan K. Goyal
3. V. Dang
4. Mark T. Leary
5. Michael R. Roberts
6. Murillo Campello
7. Vahap Bülent Uysal
8. Maria Psillaki

In Finance

1. Murray Z. Frank
2. Vidhan K. Goyal
3. V. Dang
4. Murillo Campello
5. Michael R. Roberts
6. Maria Psillaki
7. Vahap Bülent Uysal
8. Alexei V. Ovtchinnikov

In Strategy and Management

1. Murray Z. Frank
2. Vidhan K. Goyal
3. V. Dang
4. Mark T. Leary
5. O. Faleye
6. Özde Öztekin
7. Thomas Schmid
8. Scott E. Yonker

Citations in the corpus

• Firm Age, Corporate Governance, and Capital Structure Choices (2018, unknown): “This interpretation is consistent with the arguments and evidence in Bertrand and Mullainathan (2003), Morellec (2004), Lewellen (2006), Gow, Kaplan, Larcker, and Zakolyukina (2016), etc.”
• Corporate Governance and Capital Structure Dynamics (2012, unknown): “Second, our paper relates to the dynamic tradeoff models of Fisher, Heinkel, and Zechner (1989), Goldstein, Ju, and Leland (2001), Ju et al. (2005), and Strebulaev (2007).”
• The international zero-leverage phenomenon (2013, unknown): “Recent simulation studies for the dynamic trade-off theory based on contingent claim analysis derive minimum leverage ratios as low as 10% (Morellec, 2003; Ju et al., 2005).”
• Trade-Off and Pecking Order Theories of Debt (2007, background): “Dynamic trade-off models of Kane et al. (1984) and Brennan and Schwartz (1984) considerably strengthened the idea that firms are underlevered relative to the predictions of the trade-off theory.”
• An empirical analysis of zero-leverage firms: New evidence from the UK ☆ (2013, background): “…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 (Minton and Wruck,…”
• Target Behavior and Financing: How Conclusive is the Evidence? (2009, unknown): “However, dynamic tradeoff models (Ju et al. (2005), Hennessy and Whited (2004), Strebulaev (2004)) seem to produce debt ratios that are consistent with what is observed.”
• Macroeconomic Conditions and the Puzzles of Credit Spreads and Capital Structure (2010, unknown): “Ju, Parrino, Poteshman, and Weisbach (2005) , Hackbarth, Miao, and Morellec (2006),”