Debt dynamics

Journal of Finance

Volumn 60, Issue 3, 2005, Pages 1129-1165

  Hennessy, Christopher A ^a   Whited, Toni M ^b  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b UNIVERSITY OF WISCONSIN MADISON   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 19944408944     PISSN: 00221082     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1540-6261.2005.00758.x     Document Type: Article

References (60)

1. Almeida, Heitor, Murillo Campello, and Michael S. Weisbach, 2004, The cash flow sensitivity of cash, Journal of Finance 59, 1777-1804.
2. Altinkilic, Oya, and Robert S. Hansen, 2000, Are there economies of scale in underwriting fees? Evidence of rising external financing costs, Review of Financial Studies 13, 191-218.
3. Asquith, Paul, Robert Gertner, and David Scharfstein, 1994, Anatomy of financial distress: An examination of junk-bond issuers, Quarterly Journal of Economics 59, 625-658.
4. Auerbach, Alan, 1979, Share valuation and corporate equity policy, Journal of Public Economics 11, 291-305.
5. Auerbach, Alan, 2000, Taxation and corporate financial policy, in A. Auerbach and M. Feldstein, eds.: Handbook of Public Economics (North Holland, Amsterdam).
6. Baker, Malcolm, and Jeffrey Wurgler, 2002, Market timing and capital structure, Journal of Finance 57,1-32.
7. Benveniste, Lawrence, and Jose Scheinkman, 1979, On the differentiability of the value function in dynamic models of economics, Econometrica 47, 727-732.
8. Bernanke, Ben, and Mark Gertler, 1989, Agency costs, net worth and business fluctuations, American Economic Review 79, 14-31.
9. Bradford, David F., 1981, The incidence and allocation effects of a tax on corporate distributions, Journal of Public Economics 15, 1-22.
10. Brennan, Michael J., and Eduardo S. Schwartz, 1984, Optimal financial policy and firm valuation, Journal of Finance 39, 593-607.
11. Clementi, Gian Luca, and Hugo A. Hopenhayn, 2002, A theory of financing constraints and firm dynamics, Working paper, Carnegie Mellon University.
12. Cooley, Thomas F., and Vincenzo Quadrini, 2001, Financial markets and firm dynamics, American Economic Review 91, 1286-1310.
13. Cooper, Russell, and Joao Ejarque, 2001, Exhuming Q: Market power vs. capital market imperfections, Working Paper 8182, NBER.
14. Cooper, Russell, and John Haltiwanger, 2002, On the nature of capital adjustment costs, Working Paper 7925, NBER.
15. Duffie, Darrell, and Kenneth Singleton, 1999, Simulating correlated defaults, Working paper, Stanford University.
16. Erickson, Timothy, and Toni M. Whited, 2000, Measurement error and the relationship between investment and q, Journal of Political Economy 108, 1027-1057.
17. Fama, Eugene F., and Kenneth R. French, 2002, Testing trade-off and pecking order predictions about dividends and debt, Review of Financial Studies 15, 1-33.
18. Feldstein, Martin, and Lawrence Summers, 1979, Inflation and taxation of capital income in the corporate sector, National Tax Journal 41, 219-233.
19. Fischer, Edwin O., Robert Heinkel, and Josef Zechner, 1989, Dynamic capital structure choice: Theory and tests, Journal of Finance 44, 19-40.
20. Goldstein, Robert, Nengjiu Ju, and Hayne Leland, 2001, An EBIT based model of dynamic capital structure, Journal of Business 74, 483-512.
21. Gomes, Joao F., 2001, Financing investment, American Economic Review 91, 1263-1285.
22. Gourieroux, Christian, and Alain Monfort, 1996, Simulation Based Econometric Methods (Oxford University Press, Oxford, U.K.).
23. Gourieroux, Christian, Alain Monfort, and E. Renault, 1993, Indirect inference, Journal of Applied Econometrics 8, S85-S118.
24. Graham, John R., 1996a, Debt and the marginal tax rate, Journal of Financial Economics 41, 41-73.
25. Graham, John R., 1996b, Proxies for the corporate marginal tax rate, Journal of Financial Economics 42, 187-221.
26. Graham, John R., 2000, How big are the tax benefits of debt? Journal of Finance 55, 1901-1941.
27. Green, Richard, and Burton Hollifield, 2003, The personal tax advantages of equity, Journal of Financial Economics, 67, 175-216.
28. Holtz-Eakin, Douglas, Whitney K. Newey, and Harvey Rosen, 1988, Estimating vector autoregressions with panel data, Econometrica 56, 1371-1395.
29. Kim, Chang-Soo, David C. Mauer, and Ann E. Sherman, 1998, The determinants of corporate liquidity: Theory and evidence, Journal of Financial and Quantitative Analysis 33, 335-359.
30. King, Mervin A., 1974, Taxation and the cost of capital, Review of Economic Studies 41, 21-35.
31. Kiyotaki, Nobuhiro, and John Moore, 1997, Credit cycles, Journal of Political Economy 105, 211-248.
32. Leary, Mark, and Michael R. Roberts, 2004a, Do firms rebalance their capital structures? Working paper, Duke University.
33. Leary, Mark, and Michael R. Roberts, 2004b, Financial slack and tests of the pecking order theory of capital structure, Working paper, Duke University.
34. Leland, Hayne E., 1998, Agency costs, risk management, and capital structure, Journal of Finance 53, 1213-1243.
35. Leland, Hayne E., and Klaus Bjerre Toft, 1996, Optimal capital structure, endogenous bankruptcy, and the term structure of credit spreads, Journal of Finance 51, 987-1019.
36. Lucas, Robert E., 1978, On the size distribution of business firms, Bell Journal of Economics 9, 508-523.
37. MacKie-Mason, Jeffrey, 1990, Do taxes affect corporate financing decisions? Journal of Finance 45, 1471-1493.
38. Miller, Merton, 1977, Debt and taxes, Journal of Finance 32, 261-275.
39. Michaelides, Alexander, and Serena Ng, 2000, Estimating the rational expectations model of speculative storage: A Monte Carlo comparison of three simulation estimators, Journal of Econometrics 96, 231-266.
40. Mitchell, Mark, 2000, Debt policy at UST Inc., Harvard Business School Case 9-200-069.
41. Modigliani, Franco, and Merton Miller, 1963, Corporate income taxes and the cost of capital: A correction, American Economic Review 53, 433-443.
42. Myers, Stewart C., 1984, The capital structure puzzle, Journal of Finance 39, 575-592.
43. Myers, Stewart C., 1993, Still searching for optimal capital structure, Journal of Applied Corporate Finance 6, 4-14.
44. Pulvino, Todd, 1998, Do asset fire-sales exist? An empirical investigation of commercial aircraft transactions, Journal of Finance 53, 939-978.
45. Pulvino, Todd, 1999, Effects of bankruptcy court protection on asset sales, Journal of Financial Economics 52, 151-186.
46. Rajan, Raghuram G., and Luigi Zingales, 1995, What do we know about capital structure? Some evidence from international data, Journal of Finance 50, 1421-1460.
47. Ramey, Valerie A., and Matthew D. Shapiro, 2001, Displaced capital: A study of aerospace plant closings, Journal of Political Economy 109, 958-992.
48. Schürhoff, Norman, 2004, Capital gains taxes, irreversible investment, and capital structure, Working paper, Carnegie Mellon University.
49. Shyam-Sunder, Lakshmi, and Stewart C. Myers, 1999, Testing static trade-off against pecking order models of capital structure, Journal of Financial Economics 51, 219-244.
50. Sinn, Hans Werner, 1991, The vanishing harberger triangle, Journal of Public Economics 45, 271-300.
51. Smith, Clifford W. Jr., 1977, Alternative methods for raising capital: Rights versus underwritten offerings, Journal of Financial Economics 5, 273-307.
52. Stiglitz, Joseph E., 1973, Taxation, corporate financial policy, and the cost of capital, Journal of Public Economics 5, 303-311.
53. Stiglitz, Joseph E., and Andrew Weiss, 1981, Credit rationing in markets with imperfect information, American Economic Review, 393-410.
54. Stokey, Nancy L., and Robert E. Lucas, 1989, Recursive Methods in Economic Dynamics (Harvard University Press, Cambridge, MA).
55. Strebulaev, Ilya, 2004, Do tests of capital structure theory mean what they say? Working paper, London Business School.
56. Tauchen, George, 1986, Finite state Markov-chain approximations to univariate and vector autoregressions, Economics Letters 20, 177-181.
57. Titman, Sheridan, and Sergey Tsyplakov, 2003, A dynamic model of optimal capital structure, Working paper, University of Texas at Austin.
58. Titman, Sheridan, and Roberto Wessels, 1988, The determinants of capital structure choice, Journal of Finance 43, 1-21.
59. Whited, Toni M., 1992, Debt, liquidity constraints, and corporate investment: Evidence from panel data, Journal of Finance 47, 1425-1460.
60. Ziemba, William T., 1974, The behavior of a firm subject to stochastic regulatory review: Comment, Bell Journal of Economics and Management Science 5, 710-712.