A macroeconomic approach to corporate capital structure

• 成果类型: Article
• 署名作者: Katagiri, Mitsuru
• 署名单位: Bank of Japan
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2014.04.003
• 发表日期: 2014
• 页码: 79-94
• 关键词: Corporate capital structure; Dynamic trade-off theory; firm dynamics

摘要

The cross-sectional distribution of corporate capital structure and its macroeconomic implications are underexplored research areas. This paper embeds a dynamic trade-off theory of firm financing into a general equilibrium model with firm dynamics. I find that the stationary equilibrium replicates fairly well the distribution of leverage as well as the relationship between leverage, size and profitability. The counterfactual experiment points out relatively small effects of tax benefits on corporate capital structure. It also implies that the effects of the default cost on macroeconomic variables are almost negligible under endogenous capital structure choice. (C) 2014 Elsevier B.V. All rights reserved.