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Debt Covenants and the Speed of Capital Structure Adjustment
16 references·16 citing·36 second hopsampled
Debt Covenants and the Speed of Capital Structure Adjustment (2017)Debt Covenants and the Speed of Capital S…How Does Financing Impact Investment? The Role of Debt Covenants (2008)How Does Financing Impact Inv…Back to the Beginning: Persistence and the Cross‐Section of Corporate Capital Structure (2008)Back to the Beginning: Persis…Capital Structure Decisions: Which Factors Are Reliably Important? (2007)Capital Structure Decisions: …Financial Constraints Risk (2006)Financial Constraints RiskPartial adjustment toward target capital structures (2005)Partial adjustment toward tar…Corporate Governance and Equity Prices (2003)Corporate Governance and Equi…Testing Trade-Off and Pecking Order Predictions About Dividends and Debt (2002)Testing Trade-Off and Pecking…Initial conditions and moment restrictions in dynamic panel data models (1998)Initial conditions and moment…Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? (1997)Do Investment-Cash Flow Sensi…What Do We Know about Capital Structure? Some Evidence from International Data (1995)What Do We Know about Capital…Initial conditions and moment restrictions in dynamic panel data models (1995)Initial conditions and moment…An Incomplete Contracts Approach to Financial Contracting (1992)An Incomplete Contracts Appro…The Capital Structure Puzzle (1984)The Capital Structure PuzzleCorporate financing and investment decisions when firms have information that investors do not have (1984)Corporate financing and inves…On financial contracting (1979)On financial contractingRisk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Firm Leverage and Stock Price Crash Risk: The Chinese Real Estate Market and Three-Red-Lines Policy (2023)Firm Leverage and Stock Price…Does digital transformation speed up dynamic capital structure adjustment? Evidence from China (2023)Does digital transformation s…Does climate risk exposure affect corporate leverage adjustment speed? International evidence (2023)Does climate risk exposure af…Does business strategy affect dividend payout policies? (2022)Does business strategy affect…The effect of corporate sustainability performance on leverage adjustments (2021)The effect of corporate susta…Multinationality and capital structure dynamics: A corporate governance explanation (2021)Multinationality and capital …Foreign institutional ownership and the speed of leverage adjustment: International evidence (2021)Foreign institutional ownersh…Effect of positive tone in MD&A disclosure on capital structure adjustment speed: evidence from China (2021)Effect of positive tone in MD…Dynamic capital structure in Indonesia: Does the education and experience of CEOs matter? (2021)Dynamic capital structure in …Board monitoring and capital structure dynamics: evidence from bank-based economies (2021)Board monitoring and capital …Xi's anti-corruption campaign and the speed of capital structure adjustment (2020)Xi's anti-corruption campaign…The impact of loan rollover restrictions on capital structure adjustments, leverage deviations, and firm values (2020)The impact of loan rollover r…Social trust and the speed of corporate leverage adjustment: evidence from around the globe (2020)Social trust and the speed of…Liquidity and speed of leverage adjustment (2020)Liquidity and speed of levera…News media coverage and corporate leverage adjustments (2019)News media coverage and corpo…The Impact of Capital Structure on Risk and Firm Performance: Empirical Evidence for the Bucharest Stock Exchange Listed Companies (2018)The Impact of Capital Structu…CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)The Financial Accelerator in a Quantitative Business Cycle Framework (1998)Managing with Style: The Effect of Managers on Firm Policies (2003)New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index (2010)Biases in Dynamic Models with Fixed Effects (1981)Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations (1991)Another look at the instrumental variable estimation of error-components models (1995)Econometric Analysis of Cross Section and Panel Data (2001)A finite sample correction for the variance of linear efficient two-step GMM estimators (2004)How to do Xtabond2: An Introduction to Difference and System GMM in Stata (2009)The Market for "Lemons": Quality Uncertainty and the Market Mechanism (1970)The Theory of Capital Structure (1991)The theory and practice of corporate finance: evidence from the field (2001)Financing Constraints and Corporate Investment (1988)Common risk factors in the returns on stocks and bonds (1993)… and the Cross-Section of Expected Returns (2015)Policy Uncertainty and Corporate Investment (2015)Demand for green finance: Resolving financing constraints on green innovation in China (2021)Determinants of corporate borrowing (1977)A Survey of Corporate Governance (1997)Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature (2001)The Cross-Section of Expected Stock Returns (1992)Law and Finance (1998)Corporate Ownership Around the World (1999)On Persistence in Mutual Fund Performance (1997)How do family ownership, control and management affect firm value? (2005)How does financial reporting quality relate to investment efficiency? (2009)The Impact of Corporate Sustainability on Organizational Processes and Performance (2014)Does Corporate Social Responsibility Affect the Cost of Capital? (2010)Market Timing and Capital Structure (2002)CEO Overconfidence and Corporate Investment (2005)Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2008)
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References

  • 1998Initial conditions and moment restrictions in dynamic panel data models22,547 cited
  • 1984Corporate financing and investment decisions when firms have information that investors do not have18,936 cited
  • 1995Initial conditions and moment restrictions in dynamic panel data models14,749 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1984The Capital Structure Puzzle7,520 cited
  • 1997Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?6,790 cited
  • 1995What Do We Know about Capital Structure? Some Evidence from International Data6,527 cited
  • 2003Corporate Governance and Equity Prices6,115 cited
  • 2006Financial Constraints Risk3,702 cited
  • 2002Testing Trade-Off and Pecking Order Predictions About Dividends and Debt3,396 cited
  • 1979On financial contracting2,901 cited
  • 2007Capital Structure Decisions: Which Factors Are Reliably Important?2,853 cited
  • 1992An Incomplete Contracts Approach to Financial Contracting2,132 cited
  • 2008How Does Financing Impact Investment? The Role of Debt Covenants2,077 cited
  • 2005Partial adjustment toward target capital structures2,038 cited

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  • 2008Back to the Beginning: Persistence and the Cross‐Section of Corporate Capital Structure1,846 cited
  • Cited by

    • 2018The Impact of Capital Structure on Risk and Firm Performance: Empirical Evidence for the Bucharest Stock Exchange Listed Companies115 cited
    • 2021The effect of corporate sustainability performance on leverage adjustments93 cited
    • 2021Board monitoring and capital structure dynamics: evidence from bank-based economies92 cited
    • 2019News media coverage and corporate leverage adjustments90 cited
    • 2023Does digital transformation speed up dynamic capital structure adjustment? Evidence from China84 cited
    • 2021Foreign institutional ownership and the speed of leverage adjustment: International evidence60 cited
    • 2021Effect of positive tone in MD&A disclosure on capital structure adjustment speed: evidence from China58 cited
    • 2021Multinationality and capital structure dynamics: A corporate governance explanation47 cited
    • 2023Does climate risk exposure affect corporate leverage adjustment speed? International evidence46 cited
    • 2023Firm Leverage and Stock Price Crash Risk: The Chinese Real Estate Market and Three-Red-Lines Policy44 cited
    • 2020Social trust and the speed of corporate leverage adjustment: evidence from around the globe30 cited
    • 2020Liquidity and speed of leverage adjustment29 cited
    • 2021Dynamic capital structure in Indonesia: Does the education and experience of CEOs matter?29 cited
    • 2022Does business strategy affect dividend payout policies?27 cited
    • 2020The impact of loan rollover restrictions on capital structure adjustments, leverage deviations, and firm values26 cited
    • 2020Xi's anti-corruption campaign and the speed of capital structure adjustment22 cited