Het rapporteren van alternatieve financiële prestatiemaatstaven (APM’s) door ondernemingen is in de afgelopen jaren sterk toegenomen. In deze studie wordt onderzocht of, en op welke wijze, leverage ...(de verhouding tussen rentedragende langlopende schulden en de totale activa) en verlieslatendheid invloed hebben op de mate waarin APM’s worden gepubliceerd. Op basis van theorie (signaling-theorie, agency-theorie en opportunisme) en wet- en regelgeving zijn de hypothesen geformuleerd dat er sprake is van een positief verband tussen leverage en de toepassing van leningsconvenant-gerelateerde APM’s en een negatief verband tussen leverage en APM’s die gerelateerd zijn aan de waardering van de onderneming (bedrijfswaardering-gerelateerde APM’s). De hypothesen worden getoetst met data die – door toepassing van een geautomatiseerde tekstanalysator – is verkregen uit de jaarverslagen (2009–2017) van de 600 grootste Europese ondernemingen (STOXX Europe 600). De resultaten tonen dat als de leverage toeneemt meer leningsconvenant-gerelateerde APM’s worden gerapporteerd, terwijl, naarmate een groter deel van de activa is gefinancierd met rentedragend vreemd vermogen, er minder bedrijfswaardering-gerelateerde APM’s worden gepubliceerd. Verder tonen de resultaten dat de context waarin het gebruik van (specifieke) APM’s plaatsvindt van belang is. Meer specifiek, het verband tussen leverage en de rapportering van bedrijfswaardering-gerelateerde APM’s wordt beïnvloed door het wel of niet verlieslatend zijn van een onderneming.
I exploit the adoption of state-level labor protection laws as an exogenous increase in employee firing costs to examine how the costs associated with discharging workers affect capital structure ...decisions. I find that firms reduce debt ratios following the adoption of these laws, with this result stronger for firms that experience larger increases in firing costs. I also document that, following the adoption of these laws, a firm's degree of operating leverage rises, earnings variability increases, and employment becomes more rigid. Overall, these results are consistent with higher firing costs crowding out financial leverage via increasing financial distress costs.
The relationship between profitability and leverage is controversial in the capital structure literature. We revisit this relation in light of a novel quasi-natural experiment that increases market ...power for a subset of firms. We find that treated firms increase their profitability throughout the treatment period. However, they only transiently reduce financial leverage, gradually reverting to their preshock level. Firms respond differently according to size with large firms gradually adjusting their leverage toward a new target and small firms reducing it. The patterns are broadly consistent with dynamic trade-off models with both fixed and variable adjustment costs.
This paper was accepted by Gustavo Manso, finance.
Supplemental Material:
The online appendix and data are available at
https://doi.org/10.1287/mnsc.2021.4235
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The relative size and inflexibility of labor expenses lead to a form of operating leverage, which we call labor leverage. We derive a set of conditions for the existence of labor leverage even when ...labor markets are frictionless. Our model provides theoretical support for the use of firm-level labor share as a measure of labor leverage. Using Compustat/CRSP and confidential Census data, we provide evidence for the existence and for the economic significance of labor leverage: high labor share firms have operating profits that are more sensitive to economic shocks and have higher expected returns.
The mystery of zero-leverage firms Strebulaev, Ilya A.; Yang, Baozhong
Journal of financial economics,
07/2013, Letnik:
109, Številka:
1
Journal Article
Recenzirano
Odprti dostop
We present the puzzling evidence that, from 1962 to 2009, an average 10.2% of large public nonfinancial US firms have zero debt and almost 22% have less than 5% book leverage ratio. Zero-leverage ...behavior is a persistent phenomenon. Dividend-paying zero-leverage firms pay substantially higher dividends, are more profitable, pay higher taxes, issue less equity, and have higher cash balances than control firms chosen by industry and size. Firms with higher Chief Executive Officer (CEO) ownership and longer CEO tenure are more likely to have zero debt, especially if boards are smaller and less independent. Family firms are also more likely to be zero-levered.
Leverage Dynamics without Commitment DEMARZO, PETER M.; HE, ZHIGUO
The Journal of finance (New York),
June 2021, 2021-06-00, 20210601, Letnik:
76, Številka:
3
Journal Article
Recenzirano
Odprti dostop
ABSTRACT
We characterize equilibrium leverage dynamics in a trade‐off model in which the firm can continuously adjust leverage and cannot commit to a policy ex ante. While the leverage ratchet effect ...leads shareholders to issue debt gradually over time, asset growth and debt maturity cause leverage to mean‐revert slowly toward a target. Investors anticipate future debt issuance and raise credit spreads, fully offsetting the tax benefits of new debt. Shareholders are therefore indifferent toward the debt maturity structure, even though their choice significantly affects credit spreads, leverage levels, the speed of adjustment, future investment, and growth.
Our paper provides a complete characterization of leverage and default in binomial economies with financial assets serving as collateral. Our Binomial No-Default Theorem states that any equilibrium ...is equivalent (in real allocations and prices) to another equilibrium in which there is no default. Thus actual default is irrelevant, though the potential for default drives the equilibrium and limits borrowing. This result is valid with arbitrary preferences and endowments, contingent or noncontingent promises, many assets and consumption goods, production, and multiple periods. We also show that only no-default equilibria would be selected if there were the slightest cost of using collateral or handling default. Our Binomial Leverage Theorem shows that equilibrium Loan to Value (LTV) for noncontingent debt contracts is the ratio of the worst-case return of the asset to the riskless gross rate of interest. In binomial economies, leverage is determined by down risk and not by volatility.
We find that firms behave consistently with how their CEOs behave personally in the context of leverage choices. Analyzing data on CEOs' leverage in their most recent primary home purchases, we find ...a positive, economically relevant, robust relation between corporate and personal leverage in the cross-section and when examining CEO turnovers. The results are consistent with an endogenous matching of CEOs to firms based on preferences, as well as with CEOs imprinting their personal preferences on the firms they manage, particularly when governance is weaker. Besides enhancing our understanding of the determinants of corporate capital structures, the broader contribution of the paper is to show that CEOs' personal behavior can, in part, explain corporate financial behavior of the firms they manage.
Liquidity and leverage Adrian, Tobias; Shin, Hyun Song
Journal of financial intermediation,
07/2010, Letnik:
19, Številka:
3
Journal Article
Recenzirano
In a financial system in which balance sheets are continuously marked to market, asset price changes appear immediately as changes in net worth, and eliciting responses from financial intermediaries ...who adjust the size of their balance sheets. We document evidence that marked-to-market leverage is strongly procyclical. Such behavior has aggregate consequences. Changes in dealer repos – the primary margin of adjustment for the aggregate balance sheets of intermediaries – forecast changes in financial market risk as measured by the innovations in the Chicago Board Options Exchange Volatility Index VIX index. Aggregate liquidity can be seen as the rate of change of the aggregate balance sheet of the financial intermediaries.
Justice-oriented teaching must address how classroom-based disciplinary learning is shaped by interactions among local practice and systems of privilege and oppression. Our work advances current ...scholarship on high-leverage practices HLPs by emphasizing the need for teaching practices that restructure power relations in classrooms and their intersections with historicized injustice in local practice as a part of disciplinary learning. Drawing upon a critical justice stance, and long-term collaborative work with middle school teachers and youth, we report on empirically driven insights into patterns-in-practice in teaching which yield insight into both what justice-oriented high-leverage practices may be, and the cross-cutting ideals which undergird them. We discuss the patterns-in-practice and their implications for teaching and learning across subject areas: HLPs that work toward equitable and consequential ends need to be understood in terms of the practice itself and its individual and collective impact on classroom life. Keywords equity, high-leverage practices, pedagogy, teacher learning, justice, educational reform
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