Topic
Leverage (negotiation)
About: Leverage (negotiation) is a research topic. Over the lifetime, 3103 publications have been published within this topic receiving 67879 citations.
Papers published on a yearly basis
1 / 2
Papers
TL;DR: In this paper, the authors investigate the determinants of capital structure choice by analyzing the financing decisions of public firms in the major industrialized countries and find that factors identified by previous studies as correlated in the cross-section with firm leverage in the United States, are similarly correlated in other countries as well.
Abstract: We investigate the determinants of capital structure choice by analyzing the financing decisions of public firms in the major industrialized countries. At an aggregate level, firm leverage is fairly similar across the G-7 countries. We find that factors identified by previous studies as correlated in the cross-section with firm leverage in the United States, are similarly correlated in other countries as well. However, a deeper examination of the U.S. and foreign evidence suggests that the theoretical underpinnings of the observed correlations are still largely unresolved.
6,414 citations
TL;DR: In this article, a model of corporate leverage choice is formulated in which corporate and differential personal taxes exist and supply side adjustments by firms enter into the determination of equilibrium relative prices of debt and equity.
2,631 citations
TL;DR: In this paper, the static trade-off theory of corporate leverage is tested against the pecking order theory of Corporate leverage, using a broad cross-section of US firms over the period 1980-1998, and robust evidence of mean reversion in leverage is found.
Abstract: The pecking order theory of corporate leverage is tested against the static tradeoff theory of corporate leverage, using a broad cross-section of US firms over the period 1980-1998. A derivation of the conditional target adjustment framework is provided as a better empirical test of mean reversion. None of the predictions of the pecking order theory hold in the data. As predicted by the static tradeoff theory, robust evidence of mean reversion in leverage is found. This is true both unconditionally and conditionally on financial factors. Leverage is more persistent at lower levels than at higher levels. When debt matures, it is not replaced dollar for dollar by new debt and so leverage declines. Large firms increase their debt in order to support the payment of dividends. By contrast, small firms reduce their debt while they pay dividends.
2,421 citations
1 Jan 2012
TL;DR: Leverage points are points of power, and the authors not only want to believe that there are leverage points, they want to know where they are and how to get their hands on them.
Abstract: This idea is not unique to systems analysis — it’s embedded in legend. The silver bullet, the trimtab, the miracle cure, the secret passage, the magic password, the single hero who turns the tide of history. The nearly effortless way to cut through or leap over huge obstacles. We not only want to believe that there are leverage points, we want to know where they are and how to get our hands on them. Leverage points are points of power.
1,882 citations
TL;DR: A more general, partial-adjustment model of firm leverage indicates that firms do have target capital structures as mentioned in this paper, and the typical firm closes about one-third of the gap between its actual and its target debt ratios each year.
1,828 citations
Performance Metrics
| Year | Papers |
|---|---|
| 2022 | 10 |
| 2021 | 518 |
| 2020 | 313 |
| 2019 | 223 |
| 2018 | 228 |
| 2017 | 165 |