Determinants of target capital structure: The case of dual debt and equity issues

• 成果类型: Article
• 署名作者: Hovakimian, A; Hovakimian, G; Tehranian, H
• 署名单位: Boston College; City University of New York (CUNY) System; Baruch College (CUNY); Fordham University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(03)00181-8
• 发表日期: 2004
• 页码: 517-540
• 关键词: capital structure; target leverage; equity market timing; dual issues

摘要

We examine whether market and operating performance affect corporate financing behavior because they are related to target leverage. Our focus on firms that issue both debt and equity enhances our ability to draw inferences. Consistent with dynamic trade-off theories, dual issuers offset the deviation from the target resulting from accumulation of earnings and losses. Our results also imply that high market-to-book firms have low target debt ratios. On the other hand, consistent with market timing, high stock returns increase the probability of equity issuance but have no effect on target leverage. (C) 2003 Elsevier B.V. All rights reserved.