Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
958487 | Journal of Empirical Finance | 2008 | 8 Pages |
Abstract
Numerous papers in finance study the conditional mean of some proportion or fraction with a mass point at zero. We argue that most, if not all, of these studies use mis-specified statistical models, especially when firms or individuals choose to not do something for different reasons. To address these issues, we develop a new statistical model, the zero-inflated beta model, and apply it to the analysis of corporate capital structure decisions to demonstrate its applicability.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Douglas O. Cook, Robert Kieschnick, B.D. McCullough,