Timing of earnings and capital structure

Miglo, A. (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:
Depositing User: LivePure Connector
Date Deposited: 20 Oct 2021 03:28
Last Modified: 20 Oct 2021 03:28
URI: https://ueaeprints.uea.ac.uk/id/eprint/81788
DOI: 10.1016/j.najef.2017.01.001

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