Collateral and capital structure

• 成果类型: Article
• 署名作者: Rampini, Adriano A.; Viswanathan, S.
• 署名单位: Duke University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.03.002
• 发表日期: 2013
• 页码: 466-492
• 关键词: Collateral; capital structure; risk management; Leasing; Tangible assets

摘要

We develop a dynamic model of investment, capital structure, leasing, and risk management based on firms' need to collateralize promises to pay with tangible assets. Both financing and risk management involve promises to pay subject to collateral constraints. Leasing is strongly collateralized costly financing and permits greater leverage. More constrained firms hedge less and lease more, both cross-sectionally and dynamically. Mature firms suffering adverse cash flow shocks may cut risk management and sell and lease back assets. Persistence of productivity reduces the benefits to hedging low cash flows and can lead firms not to hedge at all. (C) 2013 Elsevier B.V. All rights reserved.