Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18528
Authors: 
Baum, Christopher F.
Schäfer, Dorothea
Talavera, Oleksandr
Year of Publication: 
2006
Series/Report no.: 
DIW-Diskussionspapiere 635
Abstract: 
Using data from Germany this paper examines the direct effect of non-financial firms' use of short-term versus long-term liabilities. We develop a structural model of a firm's value maximization problem that predicts that profitability of the firm will change if firms alter their use of short-term versus long-term liabilities. We find that firms that rely more heavily on short-term liabilities are likely to be more profitable.
Subjects: 
profitability
short-term liabilities
maturity structure
capital structure
JEL: 
G32
G30
Document Type: 
Working Paper

Files in This Item:
File
Size
254.9 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.