Information ratings and capital structure

Journal of Corporate Finance

Volumn 31, Issue , 2015, Pages 17-32

  Pan, Lee Hsien ^a   Lin, Chien Ting ^b   Lee, Shih Cheng ^c   Ho, Kung Cheng ^c  

^a NATIONAL CHUNG CHENG UNIVERSITY   (Taiwan)

^b DEAKIN UNIVERSITY   (Australia)

^c YUAN ZE UNIVERSITY   (Taiwan)

Author keywords

Capital structure; G32; Incentive conflicts; Information asymmetry; Information ratings; Pecking order theory

Indexed keywords

EID: 84961302011     PISSN: 09291199     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jcorpfin.2015.01.011     Document Type: Article

References (45)

1. Ajinkya B., Bhojraj S., Sengupta P. The association between outside directors, institutional investors and the properties of management earnings forecast. J. Account. Res. 2005, 43:343-376.
2. Amihud Y. Illiquidity and stock returns: cross-section and time-series effects. J. Financ. Mark. 2002, 5:31-56.
3. Andres C., Cumming D., Karabiber T., Schweizer D. Do markets anticipate capital structure decisions? - feedback effects in equity liquidity. J. Corp. Financ. 2014, 27:133-156.
4. Autore D.M., Hutton I., Peterson D., Smith A. The effect of securities litigation on external financing. J. Corp. Financ. 2014, 27:231-250.
5. Baker M., Wurgler J. Market timing and capital structure. J. Financ. 2002, 57:1-32.
6. Bharath S., Pasquariello P., Wu G. Does asymmetric information drive capital structure decisions?. Rev. Financ. Stud. 2009, 22:3211-3243.
7. Bhattacharya N., Ecker F., Olsson P., Schipper K. Direct and mediated associations among earnings quality, information asymmetry and the cost of equity. Account. Rev. 2012, 87:447-482.
8. Bhattacharya N., Desai H., Venkataraman K. Does earnings quality affect information asymmetry? Evidence from trading costs. Contemp. Account. Res. 2013, 30:482-516.
9. Brown S., Hillegeist S. How disclosure quality affects the level of information asymmetry. Rev. Account. Stud. 2007, 12:443-477.
10. Chang X., Dasgupta S., Hilary G. Analyst coverage and financing decisions. J. Financ. 2006, 61:3009-3048.
11. Chung Y., Na H.S., Smith R. How important is capital structure policy to firm survival?. J. Corp. Financ. 2013, 22:83-103.
12. Claessens S., Djankov S., Fan J., Lang L. Disentangling the incentive and entrenchment effects of large shareholdings. J. Financ. 2002, 57:2741-2771.
13. Coles J., Daniel N., Naveen L. Boards: does one size fit all?. J. Financ. Econ. 2008, 87:329-356.
14. Dittmar A., Thakor A. Why do firms issue equity?. J. Financ. 2007, 62:1-53.
15. Dong M., Loncarski I., Horstk J.T., Veld C. What drives security issuance decisions: market timing, pecking order, or both?. Financ. Manag. 2012, 41:637-663.
16. Easley D., Kiefer N., O'Hara M., Paperman J. Liquidity, information, and infrequently traded stocks. J. Financ. 1996, 51:1405-1436.
17. Easley D., Kiefer N., O'Hara M. One day in the life of a very common stock. Rev. Financ. Stud. 1997, 10:805-835.
18. Fama E., French K. Common risk factors in the returns on stocks and bonds. J. Financ. Econ. 1993, 33:3-56.
19. Fama E., French K. Financing decisions: who issues stock?. J. Financ. Econ. 2005, 76:549-582.
20. Flannery M., Hankins K.W. Estimating dynamic panel models in corporate finance. J. Corp. Financ. 2013, 19:1-19.
21. Francis J., Khurana I., Pereira R. Disclosure incentives and effects on cost of capital around the world. Account. Rev. 2005, 80:1125-1162.
22. Frank M., Goyal V. Testing the pecking order theory of capital structure. J. Financ. Econ. 2003, 67:217-248.
23. George T., Kaul G., Nimalendran M. Estimation of the bid-ask spread and its components: a new approach. Rev. Financ. Stud. 1991, 4:623-656.
24. Gomes A., Phillips G. Why do public firms issue private and public securities?. J. Financ. Intermed. 2012, 21:619-658.
25. Gompers P., Ishii J., Metrick A. Corporate governance and equity prices. Q. J. Econ. 2003, 118:107-155.
26. Healy P.M., Palepu K.G. Information asymmetry, corporate disclosure, and the capital markets: a review of the empirical disclosure literature. J. Account. Econ. 2001, 31:405-440.
27. Jensen M., Meckling W. Theory of the firm: managerial behavior, agency costs, and ownership structure. J. Financ. Econ. 1976, 3:305-360.
28. Jung K., Kim Y., Stulz R. Timing, investment opportunities, managerial discretion and the security issue decision. J. Financ. Econ. 1996, 42:159-185.
29. Kim E.H., Lu Y. Corporate governance reforms around the world and cross-border acquisitions. J. Corp. Financ. 2013, 22:236-253.
30. La Porta R., Lopez-de-Silanes F., Shleifer A., Vishny R.W. Law and finance. J. Polit. Econ. 1998, 106:1113-1155.
31. La Porta R., Lopez-de-Silanes F., Shleifer A. Corporate ownership around the world. J. Financ. 1999, 54:471-517.
32. La Porta R., Lopez-de-Silanes F., Shleifer A., Vishny R.W. Investor protection and corporate Valuation 2002.
33. Lakonishok J., Shleifer A., Vishny R. Contrarian investment, extrapolation, and risk. J. Financ. 1994, 49:1541-1578.
34. Lang M., Lundholm R. Cross-sectional determinants of analyst ratings of corporate disclosures. J. Account. Res. 1993, 31:246-271.
35. Leary M., Roberts M. The pecking order, debt capacity, and information asymmetry. J. Financ. Econ. 2010, 95:332-355.
36. Lemmon M., Zender J. Debt capacity and tests of capital structure theories. J. Financ. Quant. Anal. 2010, 45:1161-1187.
37. Modigliani F., Miller M.H. The cost of capital, corporation finance and the theory of investment. Am. Econ. Rev. 1958, 48:261-297.
38. Myers S. The capital structure puzzle. J. Financ. 1984, 39:575-592.
39. Myers S., Majluf N. Corporate financing and investment decisions when firms have information that investors do not have. J. Financ. Econ. 1984, 13:187-221.
40. Piotroski J., Roulstone D. Do insider trades reflect both contrarian beliefs and superior knowledge about future cash flow realizations?. J. Account. Econ. 2005, 39:55-81.
41. Rapp M., Schmid T., Urban D. The value of financial flexibility and corporate financial policy. J. Corp. Financ. 2014, 29:288-302.
42. Shyam-Sunder L., Myers S. Testing static tradeoff against pecking order models of capital structure. J. Financ. Econ. 1999, 51:219-244.
43. Titman S., Wessels R. The determinants of capital structure choice. J. Financ. 1988, 43:1-19.
44. Vanstraelen A., Zarzeski M.T., Robb S.W. Corporate non-financial disclosure practices and financial analyst behavior across three European countries. J. Int. Financ. Manag. Account. 2003, 14:249-278.
45. Yeh Y.H., Lee T.S., Woidtke T. Family control and corporate governance: evidence for Taiwan. Int. Rev. Financ. 2001, 2:21-48.