Flexible prices and leverage

• 成果类型: Article
• 署名作者: D'Acunto, Francesco; Liu, Ryan; Pflueger, Carolin; Weber, Michael
• 署名单位: Boston College; University of British Columbia; University of Chicago; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2018.03.009
• 发表日期: 2018
• 页码: 46-68
• 关键词: capital structure; nominal rigidities; Bank deregulation; Industrial organization and finance; Price setting; bankruptcy

摘要

The frequency with which firms adjust output prices helps explain persistent differences in capital structure across firms. Unconditionally, the most flexible-price firms have a 19% higher long-term leverage ratio than the most sticky-price firms, controlling for known determinants of capital structure. Sticky-price firms increased leverage more than flexible price firms following the staggered implementation of bank deregulation across states and over time, which we use in a difference-in-differences strategy. Firms' frequency of price adjustment did not change around the deregulation. (C) 2018 Elsevier B.V. All rights reserved.