Leaning Against the Wind: Debt Financing in the Face of Adversity
We offer evidence of a new stylized feature of corporate financing decisions: the tendency of managers to rely more on debt financing when earnings prospects are poor. We term this “leaning against the wind” and consider three possible explanations: market timing, precautionary financing, and “makin...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
John Wiley and Sons Inc.
2018
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| Online Access: | View Fulltext in Publisher |