Debt capacity and tests of capital structure theories

Journal of Financial and Quantitative Analysis

Volumn 45, Issue 5, 2010, Pages 1161-1187

  Lemmon, Michael L ^a   Zender, Jaime F ^b  

^a UNIVERSITY OF UTAH   (United States)

^b UNIVERSITY OF COLORADO   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 78649494943     PISSN: 00221090     EISSN: 17566916     Source Type: Journal    
DOI: 10.1017/S0022109010000499     Document Type: Article

References (31)

1. Almeida, H., and M. Campello. "Financing Frictions and the Substitution Effect between Internal and External Funds." Journal of Financial and Quantitative Analysis, 45(2010), 589-622.
2. Almeida, H.; M. Campello; and M. S. Weisbach. "The Cash Flow Sensitivity of Cash." Journal of Finance, 59(2004), 1777-1804. (Pubitemid 39137808)
3. Altinkiliç, O., and R. S. Hansen. "Are There Economies of Scale in Underwriting Fees? Evidence of Rising External Financing Costs." Review of Financial Studies, 13(2000), 191-218.
4. Bolton, P., and X. Freixas. "Equity, Bonds, and Bank Debt: Capital Structure and Financial Market Equilibrium under Asymmetric Information." Journal of Political Economy, 108(2000), 324-351. (Pubitemid 30318776)
5. Brennan, M., and A. Kraus. "Efficient Financing under Asymmetric Information." Journal of Finance, 42(1987), 1225-1243.
6. Cantillo, M., and J. Wright. "How Do Firms Choose Their Lenders? An Empirical Examination." Review of Financial Studies, 13(2000), 155-189.
7. Carpenter, R. E.; S. M. Fazzari; and B. C. Peterson. "Financing Constraints and Inventory Investment: A Comparative Study with High-Frequency Panel Data." Review of Economics and Statistics, 80(1998), 513-519. (Pubitemid 128344294)
8. Chang, X., and S. Dasgupta. "Target Behavior and Financing: How Conclusive Is the Evidence?" Journal of Finance, 64(2009), 1767-1796.
9. Chirinko, R. S., and A. R. Singha. "Testing Static Tradeoff against Pecking Order Models of Capital Structure: A Critical Comment." Journal of Financial Economics, 58(2000), 412-425.
10. Dybvig, P. H., and J. F. Zender. "Capital Structure and Dividend Irrelevance with Asymmetric Information." Review of Financial Studies, 4(1991), 201-219.
11. Fama, E. F., and K. R. French. "Testing Trade-Off and Pecking Order Predictions about Dividends and Debt." Review of Financial Studies, 15(2002), 1-33. (Pubitemid 37496120)
12. Fama, E. F., and K. R. French. "Financing Decisions: Who Issues Stock?" Journal of Financial Economics, 76(2005), 549-582. (Pubitemid 40717208)
13. Faulkender, M., and M. A. Petersen. "Does the Source of Capital Affect Capital Structure?" Review of Financial Studies, 19(2006), 45-79. (Pubitemid 43007155)
14. Fischer, E. O.; R. Heinkel; and J. Zechner. "Dynamic Capital Structure Choice: Theory and Tests." Journal of Finance, 44(1989), 19-40.
15. Frank, M. Z., and V. K. Goyal. "Testing the Pecking Order Theory of Capital Structure." Journal of Financial Economics, 67(2003), 217-248. (Pubitemid 36027698)
16. Hellmann, T., and J. Stiglitz. "Credit and Equity Rationing in Markets with Adverse Selection." European Economic Review, 44(2000), 281-304. (Pubitemid 30087135)
17. Holmstrom, B., and J. Tirole. "Financial Intermediation, Loanable Funds, and the Real Sector." Quarterly Journal of Economics, 112(1997), 663-691. (Pubitemid 28095148)
18. Hovakimian, A.; T. Opler; and S. Titman. "The Debt-Equity Choice." Journal of Financial and Quantitative Analysis, 36(2001), 1-24.
19. Korajczyk, R. A., and A. Levy. "Capital Structure Choice: Macroeconomic Conditions and Financial Constraints." Journal of Financial Economics, 68(2003), 75-109. (Pubitemid 36316547)
20. Korajczyk, R. A.; D. J. Lucas; and R. L. McDonald. "The Effect of Information Releases on the Pricing and Timing of Equity Issues." Review of Financial Studies, 4(1991), 685-708.
21. Leary, M. T., and M. R. Roberts. "The Pecking Order, Debt Capacity, and Information Asymmetry." Journal of Financial Economics, 95(2010), 332-355.
22. Modigliani, F., and M. H. Miller. "The Cost of Capital, Corporate Finance and the Theory of Investment." American Economic Review, 48(1958), 261-297.
23. Myers, S. C. "Determinants of Corporate Borrowing." Journal of Financial Economics, 5(1977), 147-175.
24. Myers, S. C. "The Capital Structure Puzzle." Journal of Finance, 39(1984), 575-592.
25. Myers, S. C., and N. S. Majluf. "Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have." Journal of Financial Economics, 13(1984), 187-221.
26. Petersen, M. A. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches." Review of Financial Studies, 22(2009), 435-480.
27. Rajan, R. G., and L. Zingales. "What Do We Know about Capital Structure? Some Evidence from International Data." Journal of Finance, 50(1995), 1421-1460. (Pubitemid 126007543)
28. Shyam-Sunder, L., and S. C. Myers. "Testing Static Tradeoff against Pecking Order Models of Capital Structure." Journal of Financial Economics, 51(1999), 219-244.
29. Stein, J. C. "Convertible Bonds as Backdoor Equity Financing." Journal of Financial Economics, 32(1992), 3-21.
30. Stiglitz, J. E., and A. Weiss. "Credit Rationing in Markets and Imperfect Information." American Economic Review, 71(1981), 393-410.
31. Whited, T. M. "Debt, Liquidity Constraints, and Corporate Investment: Evidence from Panel Data." Journal of Finance, 47(1992), 1425-1460.