Optimal Capital Structure and Leverage Adjustment Speed of European Public and Private Firms

Autor:	Klemen Stegovec, Matjaž Črnigoj
Jazyk:	angličtina
Rok vydání:	2020
Předmět:	optimal capital structure leverage adjustment speed partial adjustment model unified capital structure theory Business HF5001-6182
Zdroj:	Economic and Business Review, Vol 22, Iss 2 (2020)
Druh dokumentu:	article
ISSN:	1580-0466 2335-4216
DOI:	10.15458/ebr103
Popis:	In this research paper, the dynamic trade-off theory is tested by applying European public and private firms, since as much of the existing research remains in the US public firm context only. The results of our research show that European firms, both private and public, follow the optimal capital structure path consistent with the dynamic trade-off theory. We find that above optimally levered firms adjust their leverage towards the optimal capital structure faster than the below optimally levered ones. In addition, the results show that public and private firms seem to make similar leverage adjustment decisions and that not only the size but also the public/private status of the firms account for the differences.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/ae1f3d6f3ced4788b0b103b95a30011e Zobrazit plný text záznamu View record in DOAJ Plný text ve formátu PDF