Do Firms Adjust Toward a Target Leverage Level?

Do Firms Adjust to a Target Board Structure ? ?

We examine whether firms pursue target board structures. Using a broad panel from 1991–2003, we find that board changes are frequent, with two-thirds of firms changing board size or independence during a two-year period. Board changes are associated with changes in firm-specific fundamentals. The rate of change is positively associated with the benefits of effective boards and negatively associ...

Deviation from Target Leverage and Leverage Adjustment Speed in Firms with Small Positive Earnings

This study investigates whether deviation from target leverage (leverage adjustment speed) in firms with small positive earnings (i.e., SPOS) is higher (slower) than that of other firms. We find evidence suggesting that managers of SPOS manipulate sales, production processes, and discretionary expenses to avoid reporting losses. Our results show that deviation from target leverage in SPOS is hi...

Opaque Information, Deviation from Target Leverage and Speed of Adjustment

Information opacity leads to information asymmetry. In this situation, in providing their own financial needs, firms face limitations and inevitably provide their financial needs from the debt market by signalling private information to it. In addition, information opacity affects the leverage adjustment speed. This research investigates the effect of information opacity on deviation from targe...

Adjust to Target in Type 2 Diabetes

OBJECTIVE Carbohydrate counting is an effective approach to mealtime insulin adjustment in type 1 diabetes but has not been rigorously assessed in type 2 diabetes. We sought to compare an insulin-to-carbohydrate ratio with a simple algorithm for adjusting the dose of prandial insulin glusiline. RESEARCH AND DESIGN METHODS This 24-week, multicenter, randomized, controlled study compared two al...

Do Daily Retail Gasoline Prices adjust Asymmetrically?