Leverage instability and persistence: Evidence from the United States and Europe
Contribuinte(s) |
Cunha, Igor |
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Data(s) |
08/03/2016
29/01/2017
01/01/2016
|
Resumo |
We find that leverage behavior both in level and time-series variation is very similar between the United States and Europe throughout the 1990-2013 period. Leverage regimes are simultaneously unstable and persistent for both regions. We define instability as the extent to which firms largely deviate from their long-term leverage mean, while persistence as the extent to which today’s leverage influences its future levels. We then show that this simultaneous evidence imply a mean-reversion behavior of leverage and discuss some of its implications for future research on this field. |
Identificador |
http://hdl.handle.net/10362/16730 201526034 |
Idioma(s) |
eng |
Direitos |
embargoedAccess |
Palavras-Chave | #Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
Tipo |
masterThesis |