| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w26802 |
| 来源ID | Working Paper 26802 |
| Leverage Dynamics and Financial Flexibility | |
| Patrick Bolton; Neng Wang; Jinqiang Yang | |
| 发表日期 | 2020-03-09 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | We develop a q theory of investment with endogenous leverage, payout, hedging, and risk-taking dynamics. The key frictions are costly equity issuance and incomplete markets. We show that the marginal source of external financing on an on-going basis is debt. The firm lowers its debt when making a profit, increases its debt in response to losses and induced higher interest payments, and even taps external equity markets at a cost before exhausting its endogenous debt capacity. The firm seeks to preserve its financial flexibility by prudently managing its leverage and investment. Paradoxically, it is the high cost of equity issuance that causes the firm to keep leverage low, in contrast to the predictions of static Modigliani-Miller tradeoff and Myers-Majluf pecking-order theories. Our model generates leverage and investment dynamics that are consistent with the empirical evidence. |
| 主题 | Financial Economics ; Portfolio Selection and Asset Pricing ; Corporate Finance |
| URL | https://www.nber.org/papers/w26802 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/584487 |
| 推荐引用方式 GB/T 7714 | Patrick Bolton,Neng Wang,Jinqiang Yang. Leverage Dynamics and Financial Flexibility. 2020. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w26802.pdf（629KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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