INCREASED DEBT AND INDUSTRY PRODUCT MARKETS - AN EMPIRICAL-ANALYSIS

• 成果类型: Article
• 署名作者: PHILLIPS, GM
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/0304-405X(94)00785-Y
• 发表日期: 1995
• 页码: 189-238
• 关键词: capital structure; Product markets; strategic interaction

摘要

This paper tests for changes in firms' production and pricing decisions in four industries in which firms have sharply increased their financial leverage. The analysis of product price and quantity data shows that industry product market decisions are associated with capital structure. In three industries, output is negatively associated with the average industry debt ratio. In the one industry which shows a positive association between output and debt ratios, rival firms have low financial leverage and entry barriers are relatively low. Analysis of executive compensation data supports the hypothesis that managers' incentives to maximize shareholders' wealth increase following recapitalization.