Article ID Journal Published Year Pages File Type
10475244 Journal of Empirical Finance 2012 18 Pages PDF
Abstract
► We develop a dynamic panel threshold model to test the dynamic trade-off theory. ► Our model allows for both short- and long-run asymmetries in capital structure adjustments. ► We consistently estimate heterogeneous speeds of adjustment. ► We propose a bootstrap-based testing procedure for the threshold effect. ► Results provide UK evidence of asymmetries in adjustment towards target leverage.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Asymmetric capital structure adjustments: New evidence from dynamic panel threshold models
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