Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303635 
Year of Publication: 
2022
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 10 [Issue:] 1 [Article No.:] 2066764 [Year:] 2022 [Pages:] 1-12
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This study investigates asymmetries in the capital structure speed of adjustment in the case of a capital-intensive industry. Employing a sample of globally listed maritime, manufacturing and services firms between 1995 and 2020, we estimate a regime-switching partial adjustment model, to test whether the capital structure speed of adjustment depends on a firm's positioning relative to the target. After accounting for the fractional, bounded nature of leverage ratios using a DPF estimator we document that maritime firms exhibit a higher (lower) speed of adjustment when they lie below (above) their target. Our empirical findings suggest that this asymmetric behavior holds across industries but is more profound in maritime firms emphasizing this industry's particularity.
Subjects: 
capital structure
speed of adjustment
trade-off theory
maritime industry
service industry
manufacturing industry
JEL: 
G32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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