Journal of Financial Economics
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Опубликовано на портале: 26-08-2007
Sheridan Titman, Ayla Kayhan
Journal of Financial Economics.
2006.
Vol. Forthcoming.
This paper examines how cash flows, investment expenditures and stock price histories
affect debt ratios. Consistent with earlier work, we find that these variables have
a substantial influence on changes in capital structure. Specifically, stock price
changes and financial deficits (i.e., the amount of external capital raised) have
strong influences on capital structure changes, but in contrast to previous conclusions,
we find that over long horizons their effects are partially reversed. These results
indicate that although firms' histories strongly influence their capital structures,
over time their capital structures tend to move towards target debt ratios that are
consistent with the tradeoff theories of capital structure.

