Partial Adjustment toward Target Capital Structures

@inproceedings{Flannery2003PartialAT,
  title={Partial Adjustment toward Target Capital Structures},
  author={Mark J. Flannery and Kasturi P. Rangan},
  year={2003}
}
The literature provides conflicting assessments about firms’ leverage decisions. We argue that econometric mis-specifications have influenced many past conclusions, because the estimated regression models implicitly impose strong, but unwarranted, assumptions on the data. This study estimates a partial-adjustment model for a firm’s leverage decision. Our model recognizes that a firm’s target capital structure can change over time and that (unanticipated) share price changes also have on effect… CONTINUE READING
Highly Influential
This paper has highly influenced 24 other papers. REVIEW HIGHLY INFLUENTIAL CITATIONS
Highly Cited
This paper has 175 citations. REVIEW CITATIONS

From This Paper

Figures, tables, and topics from this paper.
133 Citations
28 References
Similar Papers

Citations

Publications citing this paper.
Showing 1-10 of 133 extracted citations

176 Citations

01020'05'08'11'14'17
Citations per Year
Semantic Scholar estimates that this publication has 176 citations based on the available data.

See our FAQ for additional information.

References

Publications referenced by this paper.
Showing 1-10 of 28 references

Industry Costs of Equity

  • E. F. Fama, K. R. French
  • Journal of Financial Economics,
  • 1997
Highly Influential
5 Excerpts

The Debt-Equity Choice: An Analysis Of Issuing Firms,

  • A. Hovakimian, T. C. Opler, S. Titman
  • Journal of Financial and Quantitative Analysis,
  • 2001
Highly Influential
4 Excerpts

Corporate Behaviour in Adjusting to Capital Structure and Dividend Targets: An Econometric Study,

  • A. Jalilvand, R. S. Harris
  • Journal of Finance,
  • 1984
Highly Influential
3 Excerpts

Debt Maturity and the Effects of Growth Opportunities and Liquidity Risk on Leverage,

  • Johnson, A Shane
  • Review of Financial Studies
  • 2003

Similar Papers

Loading similar papers…