Target Capital Structure Determinants and Speed of Adjustment Analysis to Address the Keynes-Hayek Debate
DOI:
https://doi.org/10.6000/1929-7092.2015.04.23Keywords:
Keynes, Hayek, capital structure, dynamic adjustment, panel modelsAbstract
According to F. A. Hayek, Keynes' General Theory neglects an analysis of the production structure. As a contribution to this research gap, we look at companies' decisions to finance investments and at their agility to adjust their capital structure. We thus study the relationship between capital structure to finance corporate production and shifts in aggregate demand. Target capital structure determinants and speeds of adjustment to these target capital structures will be analyzed for a geographically comprehensive sample of 2,706 companies listed in Asia, Europe and the U.S.A. in the period 1995 – 2009. Aggregate demand turns out to be the coordinating force which determines managers' choices of target capital structures. The speed of adjustments towards target capital structures indicate that firms are agile in adapting to their targets. Our results provide evidence on Keynes' General Theory from a firm level perspective: Firms respond quickly to shifts in aggregate demand by adjusting capital and production structure correspondingly.
References
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http://dx.doi.org/10.1111/j.1530-9134.2005.00042.x
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Bevan, Alan A. and Jo Danbolt. 2002. “Capital structure and its determinants in the United Kingdom – a decompositional analysis.” Applied Financial Economics (12): 159-170.
http://dx.doi.org/10.1080/09603100110090073
Blundell, Richard and Stephen Bond. 1998. “Initial conditions and moment restrictions in dynamic panel data models.” Journal of Econometrics (87): 115-143.
http://dx.doi.org/10.1016/S0304-4076(98)00009-8
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http://dx.doi.org/10.1007/s181-002-8356-9
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http://dx.doi.org/10.1016/j.jbankfin.2005.02.010
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http://dx.doi.org/10.1111/j.1540-6261.2008.01421.x
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http://dx.doi.org/10.1111/j.1540-6261.2006.00872.x
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De Miguel, Alberto and Julio Pindado. 2001. “Determinants of capital structure: new evidence from Spanish panel data.” Journal of Corporate Finance (7): 77-99.
http://dx.doi.org/10.1016/S0929-1199(00)00020-1
Deemsomsak, Rataporn, Krishna Paudyal and Gioia Pescetto. 2004. “The Determinants of Capital Structure: Evidence From the Asia-Pacific Region.” Journal of Multinational Financial Management (14): 387-405.
http://dx.doi.org/10.1016/j.mulfin.2004.03.001
Donaldson, Gordon. 1961. “Corporate Debt Capacity: A Study of Corporate Debt Policy and the Determination of Corporate Debt Capacity.” Harvard Graduate School of Business Administration, Boston, U.S.A.
Drobetz, Wolfgang, Pascal Pensa and Gabrielle Wanzenried. 2007. “Firm Characteristics, Economic Conditions and Capital Structure Adjustments” Working Paper. http://ssrn.com/abstract=924179.
Drobetz, Wolfgang and Gabrielle Wanzenried. 2006. “What determines the speed of adjustment to the target capital structure?” Applied Financial Economics (16): 941-958.
http://dx.doi.org/10.1080/09603100500426358
Drobetz, Wolfgang and Roger Fix. 2005. “What are the Determinants of the Capital Structure?
Evidence from Switzerland.” Swiss Journal of Economics and Statistics (151): 71-111.
Fama, Eugene F. and Kenneth R. French. 2002. “Testing Tradeoff and Pecking Order Predictions about Dividends and Debt.” The Review of Financial Studies (15): 1-33.
http://dx.doi.org/10.1093/rfs/15.1.1
Fan, Denis K. and Raymond W. So. 2004. “What managers think about capital structure: The evidence from Hong Kong.” Journal of Asian Economics (15): 817-830.
http://dx.doi.org/10.1016/j.asieco.2004.05.020
Fan, Joseph P.H., Sheridan Titman and Garry Twite. 2011. “An International Comparison of Capital Structure and Debt Maturity Choices.” Journal of Financial and Quantitative Analysis (47): 23-56.
http://dx.doi.org/10.2139/ssrn.423483
Fattouh, Bassam, Pasquale Scaramozzino and Laurence Harris. 2005. “Capital structure in South Korea: a quantile regression approach.” Journal of Development Economics (76): 231-250.
http://dx.doi.org/10.1016/j.jdeveco.2003.12.014
Faulkender, Michael, Mark J. Flannery, Kristin Watson Hankins and Jason M. Smith. 2008. “Do Adjustment Cost Impede the Realization of Target Capital Structure?” AFA 2008 New Orleans Meetings Paper, U.S.A.
Fischer, Edwin O., Robert Heinkel and Josef Zechner. 1989. “Dynamic Capital Structure Choice: Theory and Tests.” The Journal of Finance (44): 19-40.
http://dx.doi.org/10.1111/j.1540-6261.1989.tb02402.x
Flannery, Mark J. and Kristin Watson Hankins. 2007. “A Theory of Capital Structure Adjustment Speed.” Working Paper. University of Florida, U.S.A.
Flannery, Mark J. and Kasturi P. Rangan. 2006. “Partial adjustment toward target capital structures.” Journal of Financial Economics (79): 469-506.
http://dx.doi.org/10.1016/j.jfineco.2005.03.004
Frank, Murray Z. and Vidhan K. Goyal. 2009. “Capital Structure Decisions: Which Factors are reliably important?” Financial Management (38): 1-37.
http://dx.doi.org/10.1111/j.1755-053X.2009.01026.x
Frank, Murray Z. and Vidhan K. Goyal. 2007. “Corporate Leverage: How Much Do Managers Really Matter?” Working Paper. University of Minnesota and HKUST, U.S.A. and Hong Kong.
Frank, Murray Z. and Vidhan K. Goyal. 2003. “Testing the pecking order theory of capital structure.” Journal of Financial Economics (67): 217-248.
http://dx.doi.org/10.1016/S0304-405X(02)00252-0
Getzmann, André, Sebastian Lang and Klaus Spremann. 2014. “Target capital structure and adjustment speed in Asia.” Asia-Pacific Journal of Financial Studies (43): 1-30.
http://dx.doi.org/10.1111/ajfs.12038
Gao, Wenlian, Lilian Ng and Qinghai Wang. 2011. “Does Corporate Headquarters Location Matter for Firm Capital Structure?” Financial Management (40): 113-138.
http://dx.doi.org/10.1111/j.1755-053X.2010.01136.x
Glen, Jack and Ajit Singh. 2004. “Comparing capital structures and rates of return in developed and emerging markets.” Emerging Marktes Review (5): 161-192.
González, Victor M. and Francisco González. 2012. “Firm size and capital structure: evidence using dynamic panel data.” Applied Economics (44): 4745-4754.
http://dx.doi.org/10.1080/00036846.2011.595690
Graham, John R. and Campbell R. Harvey. 2001. “The theory and practice of corporate finance: Evidence from the field.” Journal of Financial Economics (60): 187-243.
http://dx.doi.org/10.1016/S0304-405X(01)00044-7
Hausman, Jerry A. 1978. “Specification Tests in Econometrics.” Econometrica (46): 1251-1272.
http://dx.doi.org/10.2307/1913827
Hennessy, Christopher A. and Toni M. Whited. 2007. “How Costly Is External Financing? Evidence from a Structural Estimation.” The Journal of Finance (62): 1705-1745.
http://dx.doi.org/10.1111/j.1540-6261.2007.01255.x
Hennessy, Christopher A. and Toni M. Whited. 2005. “Debt Dynamics.” The Journal of Finance (60): 1129-1165.
http://dx.doi.org/10.1111/j.1540-6261.2005.00758.x
Hovakimian Armen and Guangzhong Li. 2011. “In search of conclusive evidence: How to test for adjustment to target capital structure.” Journal of Corporate Finance (17): 33-44.
Huang, Rongbing and Jay R. Ritter. 2009. “Testing Theories of Capital Structure and Estimating the Speed of Adjustment.” Journal of Financial and Quantitative Analysis (44): 237-271.
http://dx.doi.org/10.1017/S0022109009090152
Judson, Ruth A. and Ann L. Owen. 1999. “Estimating dynamic panel data models: a guide for macroeconomists.” Economics Letters (65): 9-15.
http://dx.doi.org/10.1016/S0165-1765(99)00130-5
Keynes, John M. 1936. “The General Theory of Employment, Interest and Money.” The Collected Writings of John Maynard Keynes. Vol. VII. London: St. Martin Press. 1973.
Leland, Hayne E. and Klaus Berrje Toft. 1996.“ Optimal Capital Structure, Endogenous Banktruptcy, and the Term Structure of Credit Spreads.” The Journal of Finance (51): 987-1019.
http://dx.doi.org/10.1111/j.1540-6261.1996.tb02714.x
Lemmon, Michael L., Michael R. Roberts and Jaime F. Zender. 2008. “Back to the Beginning: Persistence and the Cross-Section of Corporate Capital Structure.” The Journal of Finance (63): 1775-1608.
http://dx.doi.org/10.1111/j.1540-6261.2008.01369.x
Maksimovic Vojislav, Alex Stomper and Josef Zechner. 1999. “Capital Structure, Information Acquisition and Investment Decisions in an Industry Framework.” European Finance Review (2): 251-271.
Miao, Jianjun. 2005. “Optimal Capital Structure and Industry Dynamics.” The Journal of Finance (60): 2621-2659.
http://dx.doi.org/10.1111/j.1540-6261.2005.00812.x
Modigliani, Franco and Merton H. Miller. 1963. “Corporate Income Taxes and the Cost of Capital: A Correction.” The American Economic Review (53): 433-443.
Modigliani, Franco and Merton H. Miller. 1958. “The cost of capital, corporation finance and the theory of investment.” The American Economic Review (48): 261-297.
Myers, Stewart C. 1984. “The Capital Structure Puzzle.” The Journal of Finance (39): 575-592.
http://dx.doi.org/10.2307/2327916
Myers, Stewart C. and Nicholas S. Majluf. 1984. “Corporate Financing and Investment Decisions When Firms Have Information the Investors Do Not Have.” Journal of Financial Economics (13): 187-221.
http://dx.doi.org/10.1016/0304-405X(84)90023-0
Ozkan, Aydin. 2001. “Determinants of capital structure and adjustment to long run target: Evidence from UK company panel data.” Journal of Business Finance and Accounting (28): 175-198.
http://dx.doi.org/10.1111/1468-5957.00370
Öztekin, Özde and Mark J. Flannery. 2012. “Institutional determinants of capital structure adjustment speeds.” Journal of Financial Economics (103): 88-112.
http://dx.doi.org/10.1016/j.jfineco.2011.08.014
Rajan, Raghuram G. and Luigi Zingales. 1995. “What Do We Know about Capital Structure? Some Evidence From International Data.” The Journal of Finance (50): 1421-1460.
http://dx.doi.org/10.1111/j.1540-6261.1995.tb05184.x
Roberts, Michael R. 2002. “The Dynamics of Capital Structure: An empirical Analysis of a Partially Observable System.” Working Paper. Duke University, U.S.A.
Seifert, Bruce and Halit Gonenc. 2008. “Pecking Order Behavior in Emerging Markets.” European Financial Management Association 2008 Annual Meetings, Athens, Greece.
Titman, Sheridan and Sergey Tsyplakov. 2007. “A Dynamic Model of Optimal Capital Structure.” Review of Finance (11): 401-451.
http://dx.doi.org/10.1093/rof/rfm017
Tsyplakov, Sergey. 2008. “Investment Frictions and Leverage Dynamics.” Journal of Financial Economics (89): 423-443.
http://dx.doi.org/10.1016/j.jfineco.2007.09.004
Uysal, Vahap B. 2011. “Deviation from the target capital structure and acquisition choices.” Journal of Financial Economics (102): 602-620.
http://dx.doi.org/10.1016/j.jfineco.2010.11.007
Welch, Ivo. 2004. “Capital Structure and Stock Returns.” Journal of Political Economy (112): 106-131.
http://dx.doi.org/10.1086/379933
Wiwattanakantang, Yupana. 1999. “An empirical study on the determinants of the capital structure of Thai firms.” Pacific-Basin Finance Journal (7): 371-403.
http://dx.doi.org/10.1016/S0927-538X(99)00007-4
http://dx.doi.org/10.1111/j.1530-9134.2005.00042.x
Antoniou, Antonios, Yilmaz Guney and Krishna Paudyal. 2008. “The Determinants of Capital Structure: Capital Market Oriented versus Bank Oriented Institutions.” The Journal of Financial and Quantitative Analysis (43): 59-92.
http://dx.doi.org/10.1017/S0022109000002751
Arellano, Manuel and Olympia Bover. 1995. “Another look at the instrumental variable estimation of error-components models.” Journal of Econometrics (68): 29-51.
http://dx.doi.org/10.1016/0304-4076(94)01642-D
Arena, Matteo P. and Michael Dewally. 2012. “Firm location and corporate debt.” Journal of Banking & Finance (36): 1079-1092.
http://dx.doi.org/10.1016/j.jbankfin.2011.11.003
Baker, Malcolm and Jeffrey Wurgler. 2002. “Market Timing and Capital Structure.” The Journal of Finance (57): 1-32.
http://dx.doi.org/10.1111/1540-6261.00414
Bas, David S. 2011. “Hayek´s Critique of The General Theory: A New View Of The Debate Between Hayek and Keynes.” Quarterly Journal of Austrian Economics (14): 288-310.
Bessler, Wolfgang, Wolfgang Drobetz and Pascal Pensa. 2008. “Do Managers Adjust the Capital Structure to Market Value Changes? Evidence from Europe. ” Zeitschrift für Betriebswirtschaft, Special Issue (6/2008): 113-145.
Bevan, Alan A. and Jo Danbolt. 2002. “Capital structure and its determinants in the United Kingdom – a decompositional analysis.” Applied Financial Economics (12): 159-170.
http://dx.doi.org/10.1080/09603100110090073
Blundell, Richard and Stephen Bond. 1998. “Initial conditions and moment restrictions in dynamic panel data models.” Journal of Econometrics (87): 115-143.
http://dx.doi.org/10.1016/S0304-4076(98)00009-8
Bontempi, Maria E. 2002. “The dynamic specification of the modified pecking order theory: Its relevance to Italy.” Empirical Economics (27): 1-22.
http://dx.doi.org/10.1007/s181-002-8356-9
Bradley, M., Gregg A. Jarrell and Han E. Kim. 1984. “On the Existence of an Optimal Capital Structure: Theory and Evidence.” The Journal of Finance (39): 857–878.
http://dx.doi.org/10.1111/j.1540-6261.1984.tb03680.x
Brounen, Dirk, Abe de Jong and Kees Koedijk. 2006. “Capital structure policies in Europe: Survey evidence.” Journal of Banking & Finance (30): 1409-1442.
http://dx.doi.org/10.1016/j.jbankfin.2005.02.010
Byoun, Soku. 2008. “How and When Do Firms Adjust Their Capital Structures Towards Targets?” The Journal of Finance (63): 3069-3095.
http://dx.doi.org/10.1111/j.1540-6261.2008.01421.x
Bris, Arturo, Ivo Welch and Ning Zhu. 2006. “The cost of bankruptcy: Chapter 11 Liquidation versus Chapter 7 Reorganization.” The Journal of Finance (61): 1253-1303.
http://dx.doi.org/10.1111/j.1540-6261.2006.00872.x
Clark, Brian, Bill Francis and Iftekhar Hasan. 2009. “Do firms adjust towards target capital structures? Some international evidence.” Working Paper, Lally School of Management and Technology of Rensselaer Polytechnik Institute in Troy, United States.
De Miguel, Alberto and Julio Pindado. 2001. “Determinants of capital structure: new evidence from Spanish panel data.” Journal of Corporate Finance (7): 77-99.
http://dx.doi.org/10.1016/S0929-1199(00)00020-1
Deemsomsak, Rataporn, Krishna Paudyal and Gioia Pescetto. 2004. “The Determinants of Capital Structure: Evidence From the Asia-Pacific Region.” Journal of Multinational Financial Management (14): 387-405.
http://dx.doi.org/10.1016/j.mulfin.2004.03.001
Donaldson, Gordon. 1961. “Corporate Debt Capacity: A Study of Corporate Debt Policy and the Determination of Corporate Debt Capacity.” Harvard Graduate School of Business Administration, Boston, U.S.A.
Drobetz, Wolfgang, Pascal Pensa and Gabrielle Wanzenried. 2007. “Firm Characteristics, Economic Conditions and Capital Structure Adjustments” Working Paper. http://ssrn.com/abstract=924179.
Drobetz, Wolfgang and Gabrielle Wanzenried. 2006. “What determines the speed of adjustment to the target capital structure?” Applied Financial Economics (16): 941-958.
http://dx.doi.org/10.1080/09603100500426358
Drobetz, Wolfgang and Roger Fix. 2005. “What are the Determinants of the Capital Structure?
Evidence from Switzerland.” Swiss Journal of Economics and Statistics (151): 71-111.
Fama, Eugene F. and Kenneth R. French. 2002. “Testing Tradeoff and Pecking Order Predictions about Dividends and Debt.” The Review of Financial Studies (15): 1-33.
http://dx.doi.org/10.1093/rfs/15.1.1
Fan, Denis K. and Raymond W. So. 2004. “What managers think about capital structure: The evidence from Hong Kong.” Journal of Asian Economics (15): 817-830.
http://dx.doi.org/10.1016/j.asieco.2004.05.020
Fan, Joseph P.H., Sheridan Titman and Garry Twite. 2011. “An International Comparison of Capital Structure and Debt Maturity Choices.” Journal of Financial and Quantitative Analysis (47): 23-56.
http://dx.doi.org/10.2139/ssrn.423483
Fattouh, Bassam, Pasquale Scaramozzino and Laurence Harris. 2005. “Capital structure in South Korea: a quantile regression approach.” Journal of Development Economics (76): 231-250.
http://dx.doi.org/10.1016/j.jdeveco.2003.12.014
Faulkender, Michael, Mark J. Flannery, Kristin Watson Hankins and Jason M. Smith. 2008. “Do Adjustment Cost Impede the Realization of Target Capital Structure?” AFA 2008 New Orleans Meetings Paper, U.S.A.
Fischer, Edwin O., Robert Heinkel and Josef Zechner. 1989. “Dynamic Capital Structure Choice: Theory and Tests.” The Journal of Finance (44): 19-40.
http://dx.doi.org/10.1111/j.1540-6261.1989.tb02402.x
Flannery, Mark J. and Kristin Watson Hankins. 2007. “A Theory of Capital Structure Adjustment Speed.” Working Paper. University of Florida, U.S.A.
Flannery, Mark J. and Kasturi P. Rangan. 2006. “Partial adjustment toward target capital structures.” Journal of Financial Economics (79): 469-506.
http://dx.doi.org/10.1016/j.jfineco.2005.03.004
Frank, Murray Z. and Vidhan K. Goyal. 2009. “Capital Structure Decisions: Which Factors are reliably important?” Financial Management (38): 1-37.
http://dx.doi.org/10.1111/j.1755-053X.2009.01026.x
Frank, Murray Z. and Vidhan K. Goyal. 2007. “Corporate Leverage: How Much Do Managers Really Matter?” Working Paper. University of Minnesota and HKUST, U.S.A. and Hong Kong.
Frank, Murray Z. and Vidhan K. Goyal. 2003. “Testing the pecking order theory of capital structure.” Journal of Financial Economics (67): 217-248.
http://dx.doi.org/10.1016/S0304-405X(02)00252-0
Getzmann, André, Sebastian Lang and Klaus Spremann. 2014. “Target capital structure and adjustment speed in Asia.” Asia-Pacific Journal of Financial Studies (43): 1-30.
http://dx.doi.org/10.1111/ajfs.12038
Gao, Wenlian, Lilian Ng and Qinghai Wang. 2011. “Does Corporate Headquarters Location Matter for Firm Capital Structure?” Financial Management (40): 113-138.
http://dx.doi.org/10.1111/j.1755-053X.2010.01136.x
Glen, Jack and Ajit Singh. 2004. “Comparing capital structures and rates of return in developed and emerging markets.” Emerging Marktes Review (5): 161-192.
González, Victor M. and Francisco González. 2012. “Firm size and capital structure: evidence using dynamic panel data.” Applied Economics (44): 4745-4754.
http://dx.doi.org/10.1080/00036846.2011.595690
Graham, John R. and Campbell R. Harvey. 2001. “The theory and practice of corporate finance: Evidence from the field.” Journal of Financial Economics (60): 187-243.
http://dx.doi.org/10.1016/S0304-405X(01)00044-7
Hausman, Jerry A. 1978. “Specification Tests in Econometrics.” Econometrica (46): 1251-1272.
http://dx.doi.org/10.2307/1913827
Hennessy, Christopher A. and Toni M. Whited. 2007. “How Costly Is External Financing? Evidence from a Structural Estimation.” The Journal of Finance (62): 1705-1745.
http://dx.doi.org/10.1111/j.1540-6261.2007.01255.x
Hennessy, Christopher A. and Toni M. Whited. 2005. “Debt Dynamics.” The Journal of Finance (60): 1129-1165.
http://dx.doi.org/10.1111/j.1540-6261.2005.00758.x
Hovakimian Armen and Guangzhong Li. 2011. “In search of conclusive evidence: How to test for adjustment to target capital structure.” Journal of Corporate Finance (17): 33-44.
Huang, Rongbing and Jay R. Ritter. 2009. “Testing Theories of Capital Structure and Estimating the Speed of Adjustment.” Journal of Financial and Quantitative Analysis (44): 237-271.
http://dx.doi.org/10.1017/S0022109009090152
Judson, Ruth A. and Ann L. Owen. 1999. “Estimating dynamic panel data models: a guide for macroeconomists.” Economics Letters (65): 9-15.
http://dx.doi.org/10.1016/S0165-1765(99)00130-5
Keynes, John M. 1936. “The General Theory of Employment, Interest and Money.” The Collected Writings of John Maynard Keynes. Vol. VII. London: St. Martin Press. 1973.
Leland, Hayne E. and Klaus Berrje Toft. 1996.“ Optimal Capital Structure, Endogenous Banktruptcy, and the Term Structure of Credit Spreads.” The Journal of Finance (51): 987-1019.
http://dx.doi.org/10.1111/j.1540-6261.1996.tb02714.x
Lemmon, Michael L., Michael R. Roberts and Jaime F. Zender. 2008. “Back to the Beginning: Persistence and the Cross-Section of Corporate Capital Structure.” The Journal of Finance (63): 1775-1608.
http://dx.doi.org/10.1111/j.1540-6261.2008.01369.x
Maksimovic Vojislav, Alex Stomper and Josef Zechner. 1999. “Capital Structure, Information Acquisition and Investment Decisions in an Industry Framework.” European Finance Review (2): 251-271.
Miao, Jianjun. 2005. “Optimal Capital Structure and Industry Dynamics.” The Journal of Finance (60): 2621-2659.
http://dx.doi.org/10.1111/j.1540-6261.2005.00812.x
Modigliani, Franco and Merton H. Miller. 1963. “Corporate Income Taxes and the Cost of Capital: A Correction.” The American Economic Review (53): 433-443.
Modigliani, Franco and Merton H. Miller. 1958. “The cost of capital, corporation finance and the theory of investment.” The American Economic Review (48): 261-297.
Myers, Stewart C. 1984. “The Capital Structure Puzzle.” The Journal of Finance (39): 575-592.
http://dx.doi.org/10.2307/2327916
Myers, Stewart C. and Nicholas S. Majluf. 1984. “Corporate Financing and Investment Decisions When Firms Have Information the Investors Do Not Have.” Journal of Financial Economics (13): 187-221.
http://dx.doi.org/10.1016/0304-405X(84)90023-0
Ozkan, Aydin. 2001. “Determinants of capital structure and adjustment to long run target: Evidence from UK company panel data.” Journal of Business Finance and Accounting (28): 175-198.
http://dx.doi.org/10.1111/1468-5957.00370
Öztekin, Özde and Mark J. Flannery. 2012. “Institutional determinants of capital structure adjustment speeds.” Journal of Financial Economics (103): 88-112.
http://dx.doi.org/10.1016/j.jfineco.2011.08.014
Rajan, Raghuram G. and Luigi Zingales. 1995. “What Do We Know about Capital Structure? Some Evidence From International Data.” The Journal of Finance (50): 1421-1460.
http://dx.doi.org/10.1111/j.1540-6261.1995.tb05184.x
Roberts, Michael R. 2002. “The Dynamics of Capital Structure: An empirical Analysis of a Partially Observable System.” Working Paper. Duke University, U.S.A.
Seifert, Bruce and Halit Gonenc. 2008. “Pecking Order Behavior in Emerging Markets.” European Financial Management Association 2008 Annual Meetings, Athens, Greece.
Titman, Sheridan and Sergey Tsyplakov. 2007. “A Dynamic Model of Optimal Capital Structure.” Review of Finance (11): 401-451.
http://dx.doi.org/10.1093/rof/rfm017
Tsyplakov, Sergey. 2008. “Investment Frictions and Leverage Dynamics.” Journal of Financial Economics (89): 423-443.
http://dx.doi.org/10.1016/j.jfineco.2007.09.004
Uysal, Vahap B. 2011. “Deviation from the target capital structure and acquisition choices.” Journal of Financial Economics (102): 602-620.
http://dx.doi.org/10.1016/j.jfineco.2010.11.007
Welch, Ivo. 2004. “Capital Structure and Stock Returns.” Journal of Political Economy (112): 106-131.
http://dx.doi.org/10.1086/379933
Wiwattanakantang, Yupana. 1999. “An empirical study on the determinants of the capital structure of Thai firms.” Pacific-Basin Finance Journal (7): 371-403.
http://dx.doi.org/10.1016/S0927-538X(99)00007-4
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Published
2015-12-14
How to Cite
Getzmann, A. ., Sebastian Lang, S. L., & Klaus Spremann, K. S. (2015). Target Capital Structure Determinants and Speed of Adjustment Analysis to Address the Keynes-Hayek Debate. Journal of Reviews on Global Economics, 4, 225–241. https://doi.org/10.6000/1929-7092.2015.04.23
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Special Issue - Hayek, Keynes and the Crisis: Analyses and Remedies. An Introduction
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Policy for Journals / Manuscript with Paid Access
Authors who publish with this journal agree to the following terms:
- Publisher retain copyright .
- Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work .
