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dc.contributor.authorLazzati, Natalia
dc.contributor.authorMenichini, Amilcar A.
dc.date.accessioned2015-04-08T22:50:05Z
dc.date.available2015-04-08T22:50:05Z
dc.date.issued2015-01-10
dc.identifier.urihttp://hdl.handle.net/10945/44905
dc.descriptionSSRN-id28380957en_US
dc.description.abstractWe derive a dynamic model of the rm in the spirit of the trade-o¤ theory of capital structure that explains rm behavior in terms of rm characteristics. We show our model is consistent with many important ndings about the cross-section of rms, including the negative relations between pro tability and leverage, and between dividends and investment-cash ow sensitivities. The model also explains the existence of zero-debt rms and their observed characteristics. These results have been used to challenge the trade-o¤ theory and the assumption of perfect capital markets. We revisit these critiques and provide structural explanations for the regularities we replicate.en_US
dc.rightsThis publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.en_US
dc.titleA Dynamic Model of the Firm: Structural Explanations of Key Empirical Findingsen_US
dc.typeArticleen_US
dc.contributor.departmentGraduate School of Business & Public Policy (GSBPP)en_US
dc.subject.authorDynamic model of the firmen_US
dc.subject.authortrade-off theoryen_US
dc.subject.authorzero-debt firmsen_US
dc.subject.authorinvestment-cash flow sensitivityen_US
dc.subject.authordynamic programmingen_US


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