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Target Behavior and Financing: How Conclusive Is the Evidence?
16 references·16 citing·27 second hopsampled
Target Behavior and Financing: How Conclusive Is the Evidence? (2009)Target Behavior and Financing: How Conclu…Testing Theories of Capital Structure and Estimating the Speed of Adjustment (2009)Testing Theories of Capital S…Back to the Beginning: Persistence and the Cross‐Section of Corporate Capital Structure (2008)Back to the Beginning: Persis…Partial adjustment toward target capital structures (2005)Partial adjustment toward tar…Do Firms Rebalance Their Capital Structures? (2005)Do Firms Rebalance Their Capi…Capital Structure and Stock Returns (2004)Capital Structure and Stock R…Testing Trade-Off and Pecking Order Predictions About Dividends and Debt (2002)Testing Trade-Off and Pecking…Testing the pecking order theory of capital structure (2002)Testing the pecking order the…Market Timing and Capital Structure (2002)Market Timing and Capital Str…The theory and practice of corporate finance: evidence from the field (2001)The theory and practice of co…The Debt-Equity Choice (2001)The Debt-Equity ChoiceTesting static tradeoff against pecking order models of capital structure1This paper has benefited from comments by seminar participants at Boston College, Boston Unsiversity, Dartmouth College, Massachusetts Institute of Technology, University of Massachusetts, Ohio State University, University of California at Los Angeles and the NBER, especially Eugene Fama and Robert Gertner. The usual disclaimers apply. Funding from MIT and the Tuck School at Dartmouth College is gratefuly acknowledged. We also thank two reviewers, Richard S. Ruback and Clifford W. Smith, Jr., for helpful comments.1 (1999)Testing static tradeoff again…What Do We Know about Capital Structure? Some Evidence from International Data (1995)What Do We Know about Capital…The Theory of Capital Structure (1991)The Theory of Capital Structu…The Determinants of Capital Structure Choice (1988)The Determinants of Capital S…The Capital Structure Puzzle (1984)The Capital Structure PuzzleRisk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Global leverage adjustments, uncertainty, and country institutional strength (2018)Global leverage adjustments, …Leverage dynamics over the business cycle (2016)Leverage dynamics over the bu…Dynamic Capital Structure Adjustment and the Impact of Fractional Dependent Variables (2015)Dynamic Capital Structure Adj…CORPORATE GOVERNANCE AND CAPITAL STRUCTURE DYNAMICS: AN EMPIRICAL STUDY (2015)CORPORATE GOVERNANCE AND CAPI…Bank capital management: International evidence (2015)Bank capital management: Inte…Refinancing, profitability, and capital structure (2014)Refinancing, profitability, a…Creditor rights and capital structure: Evidence from international data (2013)Creditor rights and capital s…An empirical analysis of zero-leverage firms: New evidence from the UK (2013)An empirical analysis of zero…Asymmetric capital structure adjustments: New evidence from dynamic panel threshold models (2012)Asymmetric capital structure …Why Has the Value of Cash Increased Over Time? (2011)Why Has the Value of Cash Inc…Heterogeneity in the Speed of Adjustment toward Target Leverage * (2011)Heterogeneity in the Speed of…Equity Mispricing and Leverage Adjustment Costs (2011)Equity Mispricing and Leverag…In search of conclusive evidence: How to test for adjustment to target capital structure (2010)In search of conclusive evide…Firms’ debt–equity decisions when the static tradeoff theory and the pecking order theory disagree (2010)Firms’ debt–equity decisions …A Review of Empirical Capital Structure Research and Directions for the Future (2010)A Review of Empirical Capital…Empirical Capital Structure: A Review (2007)Empirical Capital Structure: …The Cost of Capital, Corporation Finance and the Theory of Investment (1958)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)Corporate financing and investment decisions when firms have information that investors do not have (1984)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)On Persistence in Mutual Fund Performance (1997)Significance tests and goodness of fit in the analysis of covariance structures. (1980)Firms, Contracts, and Financial Structure (1995)A Survey of Corporate Governance (1997)Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems (1993)The Cross-Section of Expected Stock Returns (1992)Managing with Style: The Effect of Managers on Firm Policies (2003)Law, finance, and economic growth in China (2005)The economic implications of corporate financial reporting (2005)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)Capital Structure Decisions: Which Factors Are Reliably Important? (2007)CEO Overconfidence and Corporate Investment (2005)Econometric Analysis of Panel Data (2021)Common risk factors in the returns on stocks and bonds (1993)Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2008)Does Corporate Social Responsibility Affect the Cost of Capital? (2010)Law and Finance (1998)Corporate Ownership Around the World (1999)
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References

  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1995What Do We Know about Capital Structure? Some Evidence from International Data6,527 cited
  • 1988The Determinants of Capital Structure Choice6,108 cited
  • 2001The theory and practice of corporate finance: evidence from the field5,947 cited
  • 1991The Theory of Capital Structure4,371 cited
  • 2002Market Timing and Capital Structure3,804 cited
  • 2002Testing Trade-Off and Pecking Order Predictions About Dividends and Debt3,396 cited
  • 1984The Capital Structure Puzzle3,151 cited
  • 2002Testing the pecking order theory of capital structure2,642 cited
  • 2005Partial adjustment toward target capital structures2,038 cited
  • 2008Back to the Beginning: Persistence and the Cross‐Section of Corporate Capital Structure1,846 cited
  • 2001The Debt-Equity Choice1,797 cited
  • 1999Testing static tradeoff against pecking order models of capital structure1This paper has benefited from comments by seminar participants at Boston College, Boston Unsiversity, Dartmouth College, Massachusetts Institute of Technology, University of Massachusetts, Ohio State University, University of California at Los Angeles and the NBER, especially Eugene Fama and Robert Gertner. The usual disclaimers apply. Funding from MIT and the Tuck School at Dartmouth College is gratefuly acknowledged. We also thank two reviewers, Richard S. Ruback and Clifford W. Smith, Jr., for helpful comments.1

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1,755 cited
  • 2005Do Firms Rebalance Their Capital Structures?1,495 cited
  • 2004Capital Structure and Stock Returns1,250 cited
  • 2009Testing Theories of Capital Structure and Estimating the Speed of Adjustment933 cited
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    • 2010In search of conclusive evidence: How to test for adjustment to target capital structure234 cited
    • 2012Asymmetric capital structure adjustments: New evidence from dynamic panel threshold models227 cited
    • 2013Creditor rights and capital structure: Evidence from international data221 cited
    • 2011Why Has the Value of Cash Increased Over Time?190 cited
    • 2015Dynamic Capital Structure Adjustment and the Impact of Fractional Dependent Variables188 cited
    • 2007Empirical Capital Structure: A Review179 cited
    • 2010A Review of Empirical Capital Structure Research and Directions for the Future179 cited
    • 2010Firms’ debt–equity decisions when the static tradeoff theory and the pecking order theory disagree174 cited
    • 2016Leverage dynamics over the business cycle168 cited
    • 2011Equity Mispricing and Leverage Adjustment Costs157 cited
    • 2014Refinancing, profitability, and capital structure155 cited
    • 2015CORPORATE GOVERNANCE AND CAPITAL STRUCTURE DYNAMICS: AN EMPIRICAL STUDY139 cited
    • 2018Global leverage adjustments, uncertainty, and country institutional strength137 cited
    • 2011Heterogeneity in the Speed of Adjustment toward Target Leverage *136 cited
    • 2015Bank capital management: International evidence135 cited
    • 2013An empirical analysis of zero-leverage firms: New evidence from the UK134 cited