Financing Corporate Growth

• 成果类型: Article
• 署名作者: Frank, Murray Z.; Sanati, Ali
• 署名单位: University of Minnesota System; University of Minnesota Twin Cities; Shanghai Jiao Tong University; American University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhaa133
• 发表日期: 2021
• 页码: 4926
• 关键词: capital structure; simulated moments; stock markets; debt; determinants; INVESTMENT; CONTRACTS; decisions; models; LAW

摘要

Considerable research tackles the aggregate impact of debt financing. We show that equity is more important for firm growth than generally understood. A dollar of equity issuance is associated with an extra of real assets, whereas a dollar of debt issuance is associated with an extra . Firms issue equity first, then increase real assets, and, finally, issue debt while repurchasing equity. We explain this sequence using a model in which debt is tax preferred relative to equity but is subject to limited commitment. We use the estimated model to evaluate how several government policies affect corporate growth.