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Can I read Debt Capacity and Tests of Capital Structure Theories on EtoBox?
Debt Capacity and Tests of Capital Structure Theories by Michael L. Lemmon; Jaime F. Zender is a Economics, Econometrics and Finance article available to read on EtoBox.
What is Debt Capacity and Tests of Capital Structure Theories about?
## Abstract We examine the impact of explicitly incorporating a measure of debt capacity in recent tests of competing theories of capital structure. Our main results are that if external funds are required, in the absence of debt capacity concerns, debt appears to be preferred to equity. Concerns over debt capacity largely explain the use of new external equity financing by publicly traded firms. Finally, we present evidence that reconciles the frequent equity issues by small, high-growth firms with the pecking order. After accounting for debt capacity, the pecking order theory appears to give a good description of financing behavior for a large sample of firms examined over an extended time period.
Who reads Debt Capacity and Tests of Capital Structure Theories?
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Michael L. Lemmon; Jaime F. Zender
- Publisher
- School of Business Administration, University of Washington; Cambridge University Press; Cambridge University Press (CUP); JSTOR (ISSN 0022-1090)
- Published
- 2010
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)