Litigation risk and financial leverage
Autor: | Marcin W. Krolikowski, James Malm |
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Rok vydání: | 2015 |
Předmět: |
040101 forestry
Economics and Econometrics 050208 finance education 05 social sciences Debt-to-GDP ratio Recourse debt Financial system 04 agricultural and veterinary sciences External debt humanities Litigation risk analysis 0502 economics and business 0401 agriculture forestry and fisheries Debt ratio Business Internal debt Debt levels and flows health care economics and organizations Finance Senior debt |
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 |
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