CAPITAL STRUCTURE AND FIRM RESPONSE TO POOR PERFORMANCE - AN EMPIRICAL-ANALYSIS
成果类型：
Article
署名作者：
OFEK, E
刊物名称：
JOURNAL OF FINANCIAL ECONOMICS
ISSN/ISSBN：
0304-405X
DOI：
10.1016/0304-405X(93)90038-D
发表日期：
1993
页码：
3-30
关键词：
摘要：
This paper tests the relation between capital structure and a firm's response to short-term financial distress. In a sample of 358 firms that perform poorly for a year, higher predistress leverage increases the probability of operational actions, particularly asset restructuring and employee layoffs. Higher predistress leverage also increases the probability of financial actions such as dividend cuts. These results are consistent with Jensen's (1989) argument that higher predistress leverage increases the speed with which a firm reacts to poor performance. Interestingly, higher managerial holdings reduce the probability of operational actions, especially those that do not generate cash.