Timing of earnings and capital structure

Miglo, Anton (2017) Timing of earnings and capital structure. North American Journal of Economics and Finance, 40. pp. 1-15.

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Abstract

This paper shows that asymmetric information about the timing of earnings can affect capital structure. It sheds new light on the following issues: why profitable firms may be interested in issuing equity and why debt does not necessarily signal a firm’s quality. These issues seem to be puzzling from the classical pecking-order theory or signalling theory point of view. The paper also contributes to the analysis of the link between capital structure choice and a firm’s expected performance (short-term and long-term). An empirical analysis confirms most of our theoretical results.

Item Type:	Article
Uncontrolled Keywords:	asymmetric information pecking-order theory signalling timing of earnings
Faculty \ School:	Faculty of Social Sciences > School of Economics
Related URLs:	http://www.scopus.com/inward/record.url?...
Depositing User:	LivePure Connector
Date Deposited:	20 Oct 2021 03:28
Last Modified:	21 Apr 2023 01:11
URI:	https://ueaeprints.uea.ac.uk/id/eprint/81788
DOI:	10.1016/j.najef.2017.01.001

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