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2008-09-26Buch DOI: 10.18452/4154
Nonlinear Modeling of Target Leverage with Latent Determinant Variables
dc.contributor.authorSabiwalsky, Ralf
dc.date.accessioned2017-06-15T23:48:07Z
dc.date.available2017-06-15T23:48:07Z
dc.date.created2008-10-08
dc.date.issued2008-09-26
dc.identifier.issn1860-5664
dc.identifier.urihttp://edoc.hu-berlin.de/18452/4806
dc.description.abstractThe trade-off theory on capital structure is tested by modelling the capital structure target as the solution to a maximization problem. This solution maps asset volatility and loss given default to optimal leverage. By applying nonlinear structural equation modelling, these unobservable variables are estimated based on observable indicator variables, and simultaneously, the speed of adjustment towards this leverage target is estimated. Linear specifications of the leverage target suffer from overlap between the predictions of various theories on capital structure about the sign and significance of determinants. In contrast, the framework applied here allows for a direct test: results confirm the trade-off theory for small and medium-sized firms, but not for large firms.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.subjectCapital Structureeng
dc.subjectNonlineareng
dc.subjectLatent Variableseng
dc.subjectTrade-off Theoryeng
dc.subject.ddc330 Wirtschaft
dc.titleNonlinear Modeling of Target Leverage with Latent Determinant Variables
dc.typebook
dc.subtitleNew Evidence on the Trade-off Theory
dc.identifier.urnurn:nbn:de:kobv:11-10092198
dc.identifier.doihttp://dx.doi.org/10.18452/4154
local.edoc.container-titleSonderforschungsbereich 649: Ökonomisches Risiko
local.edoc.pages43
local.edoc.type-nameBuch
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-volume2008
local.edoc.container-issue62
local.edoc.container-year2008
local.edoc.container-erstkatid2195055-6

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