Target behavior and financing: how conclusive is the evidence?
Data(s) |
01/08/2009
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Resumo |
The notion that firms have a debt ratio target that is a primary determinant of financing behavior is influential in finance. Yet, how definitive is the evidence? We address this issue by generating samples where financing is unrelated to a firm’s current debt ratio or a target. We find that much of the available evidence in favor of target behavior based on leverage ratio changes can be reproduced for these samples. Taken together, our findings suggest that a number of existing tests of target behavior have no power to reject alternatives. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Wiley-Blackwell |
Relação |
http://dro.deakin.edu.au/eserv/DU:30085860/chang-targetbehavior-2009.pdf http://www.dx.doi.org/10.1111/j.1540-6261.2009.01479.x |
Direitos |
2009, American Finance Association |
Tipo |
Journal Article |