Abstract

http://ssrn.com/abstract=1405562
 
 

References (128)



 
 

Citations (26)



 


 



Empirical Capital Structure: A Review


Christopher A. Parsons


University of California, San Diego (UCSD) - Rady School of Management

Sheridan Titman


University of Texas at Austin - Department of Finance; National Bureau of Economic Research (NBER)

January 1, 2009

Foundations and Trends in Finance, Vol. 3, No. 1, 2008

Abstract:     
This survey provides a synthesis of the empirical capital structure literature. Our synthesis is divided into three parts. The first part examines the evidence that relates to the cross-sectional determinants of capital structure. This literature identifies and discusses the characteristics of firms that tend to be associated with different debt ratios. In the second part, we review the literature that examines changes in capital structure. The papers in this literature explore factors that move firms away from their target capital structures as well as the extent to which future financing choices move firms back toward their targets. Finally, we complete our review with a set of studies that explore the consequences of leverage, rather than its determinants. These studies are concerned with feedback from financing to real decisions. For example, we explore how a firm's financing choices influences its incentive to invest in its workers, price its products, form relationships with suppliers, or compete aggressively with competitors.

Number of Pages in PDF File: 93

Accepted Paper Series


Date posted: May 17, 2009  

Suggested Citation

Parsons, Christopher A. and Titman, Sheridan, Empirical Capital Structure: A Review (January 1, 2009). Foundations and Trends in Finance, Vol. 3, No. 1, 2008. Available at SSRN: http://ssrn.com/abstract=1405562

Contact Information

Christopher A. Parsons (Contact Author)
University of California, San Diego (UCSD) - Rady School of Management ( email )
9500 Gilman Drive
Mail Code 0502
La Jolla, CA 92093-0112
United States
Sheridan Titman
University of Texas at Austin - Department of Finance ( email )
Red McCombs School of Business
Austin, TX 78712
United States
512-232-2787 (Phone)
512-471-5073 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Feedback to SSRN


Paper statistics
Abstract Views: 3,194
Downloads: 556
Download Rank: 9,918
References:  128
Citations:  26

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.250 seconds