Leverage change, debt overhang, and stock prices
We document a significant and negative effect of the change in a firm's leverage ratio on its stock prices. We find that the negative effect is stronger for firms that have higher leverage ratios, higher likelihood of default, and face more severe financial constraints. Moreover, firms with an...
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
2011
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| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/lkcsb_research/3126 https://ink.library.smu.edu.sg/context/lkcsb_research/article/4125/viewcontent/LeverageChangeDebt_av.pdf |
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| Institution: | Singapore Management University |
| Language: | English |