Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/53884
Authors: 
Xu, Zhaoxia
Year of Publication: 
2007
Series/Report no.: 
Bank of Canada Working Paper 2007,50
Abstract: 
This paper studies capital structure adjustment mechanisms of firms that experience substantial changes in leverage. Adjustments appear to be asymmetric among firms with large increases and those with large decreases in debt ratios. The different adjustments are not due to differences in leverage targets or industry distributions between the samples. Speeds of adjustment are found to be affected by market timing opportunities. The persistence of equity market timing opportunities slows some firms' rebalancing process.
Subjects: 
Financial markets
International topics
JEL: 
G32
Document Type: 
Working Paper

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