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作者：Chang, Xin; Dasgupta, Sudipto
作者单位：Nanyang Technological University; Hong Kong University of Science & Technology
摘要：The notion that firms have a debt ratio target that is a primary determinant of financing behavior is influential in finance. Yet, how definitive is the evidence ? We address this issue by generating samples where financing is unrelated to a firm's current debt ratio or a target. We find that much of the available evidence in favor of target behavior based on leverage ratio changes can be reproduced for these samples. Taken together, our findings suggest that a number of existing tests of targ...
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作者：Riddick, Leigh A.; Whited, Toni M.
作者单位：American University; University of Rochester
摘要：Why do corporations accumulate liquid assets ? We show theoretically that intertemporal trade-offs between interest income taxation and the cost of external finance determine optimal savings. Intriguingly, we find that, controlling for Tobin's q, saving and cash flow are negatively related because firms lower cash reserves to invest after receiving positive cash-flow shocks, and vice versa. Consistent with theory, we estimate negative propensities to save out of cash flow. We also find that in...
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作者：Chapman, David A.; Polkovnichenko, Valery
作者单位：Boston College; University of Texas System; University of Texas Dallas
摘要：We examine a wide range of two-date economies populated by heterogeneous agents with the most common forms of nonexpected utility preferences used in finance and macroeconomics. We demonstrate that the risk premium and the risk-free rate in these models are sensitive to ignoring heterogeneity. This follows because of endogenous withdrawal by nonexpected utility agents from the market for the risky asset. This finding is important precisely because these alternative preferences have frequently ...
