Capital structure dynamics with restricted equity issuance: Evidence from Chinese post-IPO firms
| Autor: | Michael J. Gombola, Feng Ying Liu, De Wai Chou |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Persistence (psychology)
050208 finance Capital structure Strategy and Management 05 social sciences Monetary economics Equity issuance Incentive Common mean Extant taxon Bankruptcy 0502 economics and business Economics Business and International Management Initial public offering 050203 business & management |
| Zdroj: | Asia Pacific Management Review. 24:72-85 |
| ISSN: | 1029-3132 |
| DOI: | 10.1016/j.apmrv.2018.07.002 |
| Popis: | Chinese firms offer unique insight into capital structure dynamics because tradeoffs and constraints involved differ greatly from Western firms. Greater constraints on equity issuance combined with lesser tax benefits and bankruptcy cost should present fewer incentives for a target capital structure. Nevertheless, we find the capital structure behavior over time of Chinese firms is similar to US firms in gravitating toward a common mean and exhibiting at least as much persistence, and a similar speed of adjustment. Perhaps capital structure dynamics of both American and Chinese firms are based on managerial preferences that stem from tradition or observed practices rather than any of the extant theories. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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