학회소식
[2013년 제 4차] Do Firms Adjust Capital Structures to Manage Risk?
작성자 : 관리자
조회수 : 997
게시일 :
2013-12-16
This paper extends the literature on firms’ market timing behavior by examining whether they also time equity issuance to manage their risk and whether such risk timing behavior affects their capital structure. We find results consistent with risk timing: when firms raise external capital in response to increases in risk, they tend to choose a financing method that lowers their leverage ratios. . The results suggest that firms’ capital structure decisions are the cumulative outcome of past attempts to adjust their external financing in response to not only changes in market valuation but also changes in risk.
