What Do Credit Markets Tell Us About the Speed of Leverage Adjustment?
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چکیده
منابع مشابه
What Do Credit Markets Tell Us About the Speed of Leverage Adjustment?
T paper proposes a new methodology to infer investors’ expectations about the speed of leverage adjustment implicit in the prices of credit instruments. On average, the credit markets imply a fairly rapid annual speed of adjustment of 26% toward a firm’s predicted leverage. The speed varies considerably across partitions formed by the differential implications of the pecking order, market timin...
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ژورنال
عنوان ژورنال: Management Science
سال: 2014
ISSN: 0025-1909,1526-5501
DOI: 10.1287/mnsc.2013.1871