Litigation risk and financial leverage

Autor: Marcin W. Krolikowski, James Malm
Rok vydání: 2015
Předmět:
Zdroj: Journal of Economics and Finance. 41:180-194
ISSN: 1938-9744
1055-0925
DOI: 10.1007/s12197-015-9348-0
Popis: In this paper, we use a unique hand-collected dataset on corporate litigation to examine the relationship between litigation risk and financial leverage. We find that an increase in litigation risk is associated with a significant decrease in total debt. Partitioning total debt into long-term debt and short-term debt, we find a negative relationship between litigation risk and long-term debt. There is no significant relationship between litigation risk and short-term debt.
Databáze: OpenAIRE